Irvine, CA, June 27, 2006 - CorVel Corporation (CRVL - NASDAQ National Market), reported that the Company's Board of Directors has approved a 1,000,000 share expansion to its existing stock repurchase plan, increasing the total number of shares approved for repurchase to 8,100,000.
CorVel commenced its share repurchase program in the fall of 1996. Since that time, the Company has spent $132 million to repurchase 7.1 million shares, equal to 47% of the outstanding common stock. These purchases have been funded primarily from net earnings. CorVel had 9,416,900 shares of common stock outstanding as of March 31, 2006.
"CorVel continues to pursue expansion through both internal growth and acquisition. However, during periods when cash balances exceed internal needs, the Company will consider the repurchase of outstanding common stock," said Gordon Clemons, CorVel's Chairman.
The shares in the expanded repurchase program will be purchased from time to time at prevailing market prices, through open market or unsolicited negotiated transactions, depending upon market conditions. There is no guarantee as to the exact number of shares that will be repurchased by CorVel, and the Company may discontinue purchases at any time that management determines additional purchases are not warranted. The purchased shares will be used for general purposes, including issuance under the Company's stock option and stock purchase plans.
CorVel Corporation is an independent, nationwide provider of healthcare management services in the workers' compensation, group health, and auto insurance markets. The Company provides services to employers, government entities, insurance companies and third party administrators. In addition to the Company's networks of preferred providers, its offices deliver case management, utilization management independent medical evaluations, bill review and disability management programs.
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. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "likely," "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 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, risks relating to the Company's ability to file its annual report on Form 10-K as indicated or to receive when expected from its external auditors an audit report on its financial statements and an attestation report on management's assessment of internal control over financial reporting; risks relating to the Company's ability to maintain an effective system of internal control over financial reporting; risks that significant deficiencies and/or material weaknesses will be identified; and other 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 and the Company's most recent form 10-Q. 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.
