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): May 10, 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 9.01. Financial Statements, Pro Forma Financial Information and Exhibits.
	Item 2.02. Results of Operations and Financial Condition.
SIGNATURE
Index to Exhibits
EXHIBIT 99.1

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

     (c) Exhibits

Exhibit No.	Description of Exhibit
99.1	Press Release, dated May 10, 2005 announcing CorVel Corporation’s financial results for the three months and twelve months ended March 31, 2005 (furnished herewith but not filed pursuant to Item 12).

Item 2.02. Results of Operations and Financial Condition.

     On May 10, 2005, CorVel Corporation issued a press release announcing its financial results for the three and twelve months ended March 31, 2005. 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.

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.

May 10, 2005

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 May 10, 2005, announcing CorVel Corporation’s financial results for the three and twelve months ended March 31, 2005 (furnished herewith but not filed pursuant to Item 12).

EX-99.1

NEWS RELEASE

Date: May 10, 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 Quarterly and Fiscal Year Revenues and Earnings

IRVINE, California, May 10, 2005 – CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.24 for the quarter ended March 31, 2005, up 100% from earnings of $0.12 for the immediately preceding December quarter. The Company reported revenues of $72.8 million, up 4.3% from revenues of $69.8 in the December quarter.

For the fiscal year ended March 31, 2005, revenues were $291 million, representing a 4.6% decrease from the $305 million of revenues achieved in fiscal 2004. Revenues and earnings were reduced in the fiscal year by law changes in California and Colorado. Industry total workers compensation claims were down approximately 10% in calendar 2004.

Several new accounts, together with the seasonally stronger quarter, allowed the Company to achieved results improved from those reported for the preceding quarter. Both Patient Management and Network Solutions product lines benefited. The Company has been working on productivity improvements, including some workflow automation initiatives. Total CorVel employment dropped 4.1% from the prior quarter, contributing to the margin increase.

The Company continued to invest in its MedCheck medical review software. MedCheck offers unique Application Service Provider (ASP) solutions for large insurers and TPA’s. Superior savings are achieved through the use of advanced rules engine processing. New features include expanded document management and workflow management features. Advanced features differentiate CorVel in the marketplace and have been instrumental in new municipal and state government contracts.

Quarterly Preferred Provider Networks (PPO) operations expanded 5.6% year-over-year, in spite of the drop in industry claims volumes. In California over forty of the Company’s Medical Provider Networks (MPN’s) have now been approved. CorVel is one of the leading MPN’s in the State. The availability of such services, and their integration with the Company’s advanced MedCheck software, has been an important feature in offerings

to the employer marketplace.

CareMC, the Company’s healthcare management portal, has been expanded to include increasing integration with the claims systems of insurers and TPA’s. By integrating scanning and document management features, CareMC customers can implement advanced workflow management techniques tailored to their own unique needs. Scanning volumes expanded by 90% in March quarter of 2005 versus the same quarter the prior year. The Company’s Scan One organization has had increasing demand, and is expanding its line of unique document management programs. Improved reporting and analytic services were introduced during the quarter and will be integrated with CareMC. CorVel plans to continue capitalizing upon its technology resources to provide employers with improved and more current access to information regarding their workers compensation programs.

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 1,500 clients through its 2,980 associates and 145 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.

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by us, 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,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our 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, risks associated with general industry and economic conditions; cost of capital and capital requirements; competition from other managed care companies; the ability to expand certain areas of our business; shifts in customer demands; our ability to produce market-competitive software; changes in operating expenses including employee wages; increased cost of employer provided medical and other benefits; governmental and public policy changes; dependence on key personnel; possible litigation and legal liability in the course of operations; and the continued availability of financing in the amounts and at the terms necessary to support our future business. Further information on potential factors

that could affect our financial results is included in our annual report on Form 10-K, and in our other reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

CorVel Corporation
Income Statement
Three months ended March 2004 and 2005 (unaudited)

	Three months ended March 31,
	2004		2005
Revenues	$	76,758,000	$	72,800,000
Cost of revenues		65,001,000		61,648,000
Gross profit		11,757,000		11,152,000
General and administrative expenses		6,731,000		7,170,000
Income before income taxes		5,026,000		3,982,000
Income tax provision		1,910,000		1,534,000
Net Income	$	3,116,000	$	2,448,000
Net income per share
Basic	$	.29	$	.24
Diluted	$	.29	$	.24
Weighted average shares outstanding
Basic		10,564,000		10,213,000
Diluted		10,789,000		10,270,000

CorVel Corporation
Income Statement
Twelve months ended March 31, 2004 and 2005 (audited)

	Twelve months ended March 31,
	2004		2005
Revenues	$	305,279,000	$	291,000,000
Cost of revenues		253,846,000		246,341,000
Gross profit		51,433,000		44,659,000
General and administrative expenses		26,067,000		28,144,000
Income before income taxes		25,366,000		16,515,000
Income tax provision		9,353,000		6,358,000
Net Income	$	16,013,000	$	10,157,000
Net income per share
Basic	$	1.51	$	.97
Diluted	$	1.48	$	.97
Weighted average shares outstanding
Basic		10,585,000		10,419,000
Diluted		10,838,000		10,520,000

CorVel Balance Sheet
Summary Balance Sheet Information
As of March 31, 2004 and March 31, 2005

	March 31, 2004			March 31, 2005
Assets
Cash and cash equivalents	$	8,641,000		$	8,945,000
Accounts receivable, net		45,538,000			45,611,000
Prepaid taxes and expenses		5,363,000			3,530,000
Deferred income taxes		4,316,000			4,278,000
Property and Equipment, Net		29,387,000			29,649,000
Goodwill and Other Assets		13,066,000			13,045,000
TOTAL ASSETS	$	106,311,000		$	105,058,000
Liabilities and Stockholders’ Equity
Accounts payable	$	10,765,000		$	12,799,000
Accrued liabilities		11,847,000			11,059,000
Deferred income taxes		6,077,000			7,286,000
Common stock and paid-in-capital		54,010,000			57,345,000
Treasury Stock		(96,281,000	)		(113,481,000	)
Retained earnings		119,893,000			130,050,000
TOTAL LIABILITIES AND EQUITY	$	106,311,000		$	105,058,000