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): October 26, 2004

CorVel Corporation

(Exact Name of Registrant as Specified in Its Charter)

Delaware	000-19291	33-0282651
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer 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)

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 October 26, 2004, CorVel Corporation issued a press release announcing its financial results for the three and six months ended September 30, 2004. 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 October 26, 2004, announcing CorVel Corporation’s financial results for the three months and six months ended September 30, 2004 (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.

October 26, 2004

CORVEL CORPORATION, a Delaware corporation (Registrant)
By:	/s/ RICHARD J. SCHWEPPE
	Richard J. Schweppe
	Chief Financial Officer and Secretary

3

Index to Exhibits

Exhibit No.	Description of Exhibit
99.1	Press Release, dated October 26, 2004, announcing CorVel Corporation’s financial results for the three months and six months ended September 30, 2004 (furnished herewith but not filed pursuant to Item 12).

4

EX-99.1

Exhibit 99.1

NEWS RELEASE

Date: October 26, 2004	CorVel Corporation 2010 Main Street Suite 600 Irvine, CA 92614
FOR IMMEDIATE RELEASE	Contact: Richard Schweppe Phone: 949-851-1473 http://www.corvel.com

CorVel Announces Revenues and Earnings

IRVINE, California, October 26, 2004 – CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.29 for the quarter ended September 30, 2004, down 29% from per share earnings of $0.41 for the same quarter of the prior year. Net income for the quarter was $3.0 million compared to $4.5 million for the prior year’s September quarter. September quarter revenues were $72 million, down 6% from $77 million in the September quarter of 2003. Revenues and earnings for the quarter reflected the continuing soft workers’ compensation claims market, regulatory changes in Colorado and California, and the unusual hurricane season in Florida.

Earnings per share for the six months ended September 30, 2004 were $.61 compared to $.81 for the same period in the prior year, a decrease of 25%. Net income for the six months ended September 30 was $6.4 million compared to $8.8 million for the same period in the prior year. Six month revenues were $148 million compared to $153 million in the prior year.

During the quarter, the Company continued to adjust its workforce to match the changing mix of services delivered. Document scanning and workflow management, sold under the Scan One brand name, expanded in the quarter, while managed care services declined. Reductions in the labor content in medical review services are an ongoing benefit of new technology being deployed. As a result, CorVel is involved in a restructuring of its operations, enabled by advances in document management.

The unusual weather in Florida in the quarter temporarily depressed operations in the Southeast. CorVel’s Florida staff and the Company’s flexible information systems architecture, allowed operations to be maintained throughout the hurricane season. Overall economic activity in the region was heavily impacted by the severe weather. In California, the workers’ compensation market awaits new State regulations that will define the environment to be effective January 1, 2005. Interim periods created by the sun-setting of old laws, to be replaced later by new legislation, are typically disruptive to the Company’s business during the transition period.

The technology employed in CorVel’s medical review and network management services continues to rapidly advance. Two new releases of the Company’s MedCheck medical review software were completed, initiating a new era of automated document and workflow management. The Company has developed the ability to capture data remotely for storage and use in its centralized document management systems. This reduces resistance to change within workforce groups, making it easier for customers to implement automation applications.

The deployment of artificial intelligence continues to increase the savings achieved for customers. The newest software versions, to be implemented in the coming quarters, are expected to improve processing speeds as well. The newest versions of MedCheck allow artificial intelligence to route work to the most efficient and productive workgroups within a larger organization. These changes capitalize upon innovations in workforce and productivity management, ever more tightly integrating CorVel with its customers.

About CorVel
CorVel Corporation (http://www.corvel.com/) is a national provider of leading-edge services and solutions in the field of managed healthcare. 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 more than 2,000 clients through its over 3,100 associates and 155 offices in 49 states. Leveraging its commitment to flexibility and personal service, CorVel delivers custom solutions for employers, insurers, third party administrators and government entities.

This press release contains forward-looking statements that are subject to risks and uncertainties, including the risk that the historical financial performance of the Company may not be indicative of future financial performance and the risk that the recent performance of the Company’s Common Stock may not be indicative of its future performance, as well as other risks detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year ended March 31, 2004, and the Company’s most recent form 10-Q.

CorVel Corporation
Income Statement — Unaudited
Three months ended September 30, 2003 and 2004

	Three months ended September 30,
	2003		2004
Revenues	$	76,978,000	$	72,156,000
Cost of revenues		63,548,000		60,462,000
Gross profit		13,430,000		11,694,000
General and administrative expenses		6,239,000		6,756,000
Income before income taxes		7,191,000		4,938,000
Income tax provision		2,733,000		1,901,000
Net Income	$	4,458,000	$	3,037,000
Net income per share
Basic	$	.42	$	.29
Diluted	$	.41	$	.29
Weighted average shares outstanding
Basic		10,593,000		10,487,000
Diluted		10,877,000		10,597,000

CorVel Corporation
Income Statement — Unaudited
Six months ended September 30, 2003 and 2004

	Six months ended September 30,
	2003		2004
Revenues	$	152,890,000	$	148,412,000
Cost of revenues		125,852,000		123,809,000
Gross profit		27,038,000		24,603,000
General and administrative expenses		12,819,000		14,119,000
Income before income taxes		14,219,000		10,484,000
Income tax provision		5,404,000		4,036,000
Net Income	$	8,815,000	$	6,448,000
Net income per share Basic	$	.83	$	.61
Diluted	$	.81	$	.61
Weighted average shares outstanding
Basic		10,609,000		10,535,000
Diluted		10,886,000		10,651,000

CorVel Balance Sheet
Summary Balance Sheet Information
As of March 31, 2004 (audited) and September 30, 2004 (unaudited)

	March 31, 2004			Sept. 30, 2004
Assets
Cash and cash equivalents	$	8,641,000		$	12,990,000
Accounts receivable, net		45,538,000			43,670,000
Prepaid taxes and expenses		5,363,000			2,334,000
Deferred income taxes		4,316,000			3,472,000
Property and equipment, net		29,387,000			29,938,000
Goodwill and other assets		13,066,000			13,144,000
TOTAL ASSETS	$	106,311,000		$	105,548,000
Liabilities and Stockholders’ Equity
Accounts payable	$	10,765,000		$	10,185,000
Accrued liabilities		11,847,000			9,541,000
Deferred income taxes		6,077,000			5,544,000
Common stock and paid-in-capital		54,010,000			55,752,000
Treasury stock		(96,281,000	)		(101,815,000	)
Retained earnings		119,893,000			126,341,000
TOTAL LIABILITIES AND EQUITY	$	106,311,000		$	105,548,000