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): February 8, 2007

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 (Address of Principal Executive Offices)		92614 (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 February 8, 2007, CorVel Corporation issued a press release announcing its financial results for the three and nine months ended December 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 February 8, 2007 announcing CorVel Corporation’s financial results for the three and nine months ended December 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)
Date: February 8, 2007	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 February 8, 2007 announcing CorVel Corporation’s preliminary financial results for the three and nine months ended December 31, 2006 (furnished herewith but not filed pursuant to Item 12).

EX-99.1

Exhibit 99.1

NEWS RELEASE

Date: February 8, 2007	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, February 8, 2007 — CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.27 for the quarter ended December 31, 2006, up 125% from the $0.12 earnings per share reported for December quarter of 2005. Earnings in the quarter increased 170% from the $0.10 non-GAAP earnings per share for the December quarter of 2005 adjusted to include stock compensation expenses. December quarter revenues were $67 million, up from $63 million in the December quarter of 2005. Revenues and earnings for the quarter reflected the Company’s improving results in its Network Solutions product line.

Ongoing improvements to CorVel’s line of document management and medical review systems, as well as expansions to the Company’s PPO’s, are improving Network Solutions results. Reduced operating expenses and improving productivity also contributed to improving results.

Regulatory compliance and systems expenses added to corporate overhead; however, branch operations continued to improve productivity. Although industry claims volumes remained depressed, the Company continued to make progress adjusting to the lower demand levels. Regulatory changes in workers compensation are continuing in several states. The Company is a leader in the facilitation of employer compliance with such regional workers’ compensation legislation.

During the quarter the Company declared a three-for-two stock split of the Company’s Common Shares, effected in the form of a 50% stock dividend. The stock dividend was distributed on December 8, 2006 to stockholders of record on November 20, 2006.

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, 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 December 31, 2005 and 2006

(All share and per share amounts have been retroactively adjusted to reflect the three-for-two stock split which occurred during the December 2006 quarter)

	Three months ended December 31,
	2005		2006
Revenues	$	63,073,000	$	66,580,000
Cost of revenues		53,025,000		51,048,000
Gross profit		10,048,000		15,532,000
General and administrative expenses		7,341,000		9,263,000
Income before income taxes		2,707,000		6,269,000
Income tax provision		1,042,000		2,444,000
Net Income	$	1,665,000	$	3,825,000
Net income per share
Basic	$	0.12	$	0.27
Diluted	$	0.12	$	0.27
Weighted average shares outstanding
Basic		14,297,000		14,026,000
Diluted		14,330,000		14,368,000

CorVel Corporation
Income Statement — Unaudited
Nine months ended December 31, 2005 and 2006

	Nine months ended December 31,
	2005		2006
Revenues	$	200,083,000	$	203,671,000
Cost of revenues		167,158,000		155,416,000
Gross profit		32,925,000		48,255,000
General and administrative expenses		22,055,000		26,472,000
Income before income taxes		10,870,000		21,783,000
Income tax provision		4,184,000		8,495,000
Net Income	$	6,686,000	$	13,288,000
Net income per share
Basic	$	0.46	$	0.94
Diluted	$	0.45	$	0.93
Weighted average shares outstanding
Basic		14,675,000		14,091,000
Diluted		14,742,000		14,255,000

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

	March 31, 2006			Dec. 31, 2006
Assets
Cash and cash equivalents	$	14,206,000		$	24,003,000
Accounts receivable, net		39,521,000			38,569,000
Prepaid taxes and expenses		2,221,000			2,875,000
Deferred income taxes		4,521,000			5,200,000
Property and equipment, net		26,459,000			24,100,000
Goodwill and other assets		13,170,000			13,069,000
TOTAL ASSETS	$	100,098,000		$	107,816,000
Liabilities and Stockholders’ Equity
Accounts payable	$	13,712,000		$	13,357,000
Accrued liabilities		12,160,000			12,937,000
Deferred income taxes		6,190,000			5,400,000
Common stock and paid-in-capital		61,086,000			72,515,000
Treasury stock		(132,205,000	)		(148,836,000	)
Retained earnings		139,155,000			152,443,000
TOTAL LIABILITIES AND EQUITY	$	100,098,000		$	107,816,000