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): June 1, 2006

CorVel Corporation

(Exact Name of Registrant as Specified in Its Charter)

Delaware
(State or Other Jurisdiction of Incorporation) 000-19291
(Commission File Number) 33-0282651
(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 June 1, 2006, CorVel Corporation issued a press release announcing its financial results for the three and twelve months ended March 31, 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 June 1, 2006 announcing CorVel Corporation’s financial results for the three months and twelve months ended March 31, 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)
June 1, 2006	By:	/s/ V. GORDON CLEMONS
		V. Gordon Clemons
		Chairman and Chief Executive Officer

3

Index to Exhibits

Exhibit No.	Description of Exhibit
99.1	Press Release, dated June 1, 2006, announcing CorVel Corporation’s financial results for the three and twelve months ended March 31, 2006 (furnished herewith but not filed pursuant to Item 12).

4

EX-99.1

Exhibit 99.1

NEWS RELEASE

Date: June 1, 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 Quarterly and Fiscal Year Revenues and Earnings

IRVINE, California, June 1, 2006 — CorVel Corporation (NASDAQ: CRVL) reported unaudited earnings per share of $0.33 for the quarter ended March 31, 2006, up from $0.24 in the same quarter of the prior year. For the fiscal year ended March 31, 2006 earnings were $1.01 compared to fiscal 2005 earnings of $ 0.97.

The Company reported quarterly revenues of $66.6 million, down from prior year quarterly revenues of $72.8. For the fiscal year ended March 31, 2006, revenues were $267 million, representing an 8.4% decrease from the $291 million in revenues achieved in fiscal 2005. Improving margins permitted an increase in earnings despite a decline in revenues influenced by the low national volume of workers’ compensation claims.

In the quarter the Company continued to experience improving revenues in its preferred provider organizations and specialty review services. Strong savings for customers have been contributing to increasing revenues for these services. CorVel continues to experience improving productivity following the recent years’ investments in document management, automated workflow and improvements to the automated routing of work to centers of excellence. The gains continued throughout the quarter, reaching their highest levels in late March.

Cash balances increased in the quarter, as a result of reduced stock repurchases and improving management of accounts receivable, fixed asset additions and operating costs. Subsequent to the end of the quarter the Company added key new sales and operations executives as a part of plans to expand its directed care networks and technology services for major payors.

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 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. Such forward-looking statements include, but are not limited to, statements relating to the Company’s financial statements. 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, 2005. 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 March 31, 2005 and 2006

	2005		2006
Revenues	$	72,800,000	$	66,554,000
Cost of revenues		61,648,000		54,094,000
Gross profit		11,152,000		12,460,000
General and administrative expenses		7,170,000		7,414,000
Income before income taxes		3,982,000		5,046,000
Income tax provision		1,534,000		1,943,000
Net Income	$	2,448,000	$	3,103,000
Net income per share
Basic	$	0.24	$	0.33
Diluted	$	0.24	$	0.33
Weighted average shares outstanding
Basic		10,213,000		9,406,000
Diluted		10,270,000		9,428,000

CorVel Corporation
Income Statement
Twelve months ended March 31, 2005 and 2006

	2005		2006
Revenues	$	291,000,000	$	266,637,000
Cost of revenues		246,341,000		221,252,000
Gross profit		44,659,000		45,385,000
General and administrative expenses		28,144,000		29,469,000
Income before income taxes		16,515,000		15,916,000
Income tax provision		6,358,000		6,127,000
Net Income	$	10,157,000	$	9,789,000
Net income per share
Basic	$	0.97	$	1.01
Diluted	$	0.97	$	1.01
Weighted average shares outstanding
Basic		10,419,000		9,689,000
Diluted		10,520,000		9,728,000

CorVel Corporation
Balance Sheet
Summary Balance Sheet Information
As of March 31, 2005 and March 31, 2006

	March 31, 2005			March 31, 2006
Assets
Cash and cash equivalents	$	8,945,000		$	14,181,000
Accounts receivable, net		45,611,000			37,802,000
Prepaid taxes and expenses		3,891,000			2,902,000
Deferred income taxes		4,537,000			4,303,000
Property and equipment, net		29,649,000			27,116,000
Goodwill and other assets		13,045,000			12,980,000
TOTAL ASSETS	$	105,678,000		$	99,284,000
Liabilities and Stockholders’ Equity
Accounts and taxes payable	$	12,293,000		$	12,989,000
Accrued liabilities		12,059,000			11,538,000
Deferred income taxes		7,700,000			6,402,000
Common stock and paid-in-capital		57,672,000			61,336,000
Treasury stock		(113,481,000	)		(132,205,000	)
Retained earnings		129,435,000			139,224,000
TOTAL LIABILITIES AND EQUITY	$	105,678,000		$	99,284,000