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): January 25, 2005

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)

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 January 25, 2005, CorVel Corporation issued a press release announcing its financial results for the three and nine months ended December 31, 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 January 25, 2005 announcing CorVel Corporation’s financial results for the three months and nine months ended December 31, 2004 (furnished herewith but not filed pursuant to Item 12).

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.

January 25, 2005

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

Index to Exhibits

Exhibit No.	Description of Exhibit
99.1	Press Release, dated January 25, 2005, announcing CorVel Corporation’s financial results for the three and nine months ended December 31, 2004 (furnished herewith but not filed pursuant to Item 12).

EX-99.1

Exhibit 99.1

NEWS RELEASE

Date: January 25, 2005	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 December Quarter Revenues and Earnings

IRVINE, California, January 25, 2005 – CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.12 for the quarter ended December 31, 2004. Net income for the quarter was $1.3 million compared to $4.1 million for the prior year’s December quarter. December quarter revenues were $69.8 million, down from $75.6 million in the December quarter of 2003. Revenues and earnings for the quarter reflected the soft labor market in the U.S., which in turn has caused workers’ compensation claims to decline from the levels of a year ago.

Earnings per share for the nine months ended December 31, 2004 were $0.73 compared to $1.19 for the same period in the prior year. Net income for the nine months ended December 31, 2004 were $7.7 million down from $12.9 million for the same period in the prior year. Revenues were $218 million compared to $229 million.

Many of the Company’s customers have experienced declining claims volumes following the soft labor markets of 2002 and 2003. Lower rates of inflation in workers compensation healthcare costs have also impacted claims activity.

During the quarter CorVel’s MedCheck medical review system was expanded to include the use of artificial intelligence modules capable of rerouting workflow to optimize results. Medical review is routed by type of care to units specializing in each category of review. These extensions augment a next generation of MedCheck, originally launched in mid-2004. During the December quarter these software enhancements were instrumental in procuring a number of new accounts.

CorVel’s healthcare management website, CareMC (http://www.caremc.com), is integrated with MedCheck medical bill review software. The combination of CareMC and MedCheck position the Company to expand its participation in the Application Service Provider (ASP) market. Many of the largest workers compensation payors either lease software or use ASP services for medical bill review. As the only software vendor that owns a proprietary Preferred Provider Organization (PPO), CorVel is uniquely positioned to deliver ASP solutions.

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 more than 2,000 clients through its 3,100 associates and 150 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 December 31, 2003 and 2004

	2003		2004
Revenues	$	75,631,000	$	69,788,000
Cost of revenues		62,993,000		60,884,000
Gross profit		12,638,000		8,904,000
General and administrative expenses		6,517,000		6,855,000
Income before income taxes		6,121,000		2,049,000
Income tax provision		2,039,000		788,000
Net Income	$	4,082,000	$	1,261,000
Net income per share
Basic	$	0.39	$	0.12
Diluted	$	0.38	$	0.12
Weighted average shares outstanding
Basic		10,559,000		10,395,000
Diluted		10,794,000		10,510,000

CorVel Corporation
Income Statement — Unaudited
Nine months ended December 31, 2003 and 2004

	2003		2004
Revenues	$	228,521,000	$	218,200,000
Cost of revenues		188,845,000		184,693,000
Gross profit		39,676,000		33,507,000
General and administrative expenses		19,336,000		20,974,000
Income before income taxes		20,340,000		12,533,000
Income tax provision		7,443,000		4,824,000
Net Income	$	12,897,000	$	7,709,000
Net income per share
Basic	$	1.22	$	0.74
Diluted	$	1.19	$	0.73
Weighted average shares outstanding
Basic		10,592,000		10,488,000
Diluted		10,855,000		10,604,000

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

	March 31, 2004			Dec. 31, 2004
Assets
Cash and cash equivalents	$	8,641,000		$	10,461,000
Accounts receivable, net		45,538,000			42,573,000
Prepaid taxes and expenses		5,363,000			3,693,000
Deferred income taxes		4,316,000			3,237,000
Property and equipment, net		29,387,000			30,098,000
Goodwill and other assets		13,066,000			13,124,000
TOTAL ASSETS	$	106,311,000		$	103,186,000
Liabilities and Stockholders’ Equity
Accounts payable	$	10,765,000		$	10,330,000
Accrued liabilities		11,847,000			10,383,000
Deferred income taxes		6,077,000			5,602,000
Common stock and paid-in-capital		54,010,000			56,194,000
Treasury stock		(96,281,000	)		(106,925,000	)
Retained earnings		119,893,000			127,602,000
TOTAL LIABILITIES AND EQUITY	$	106,311,000		$	103,186,000