IRVINE, Calif., Feb. 15 /PRNewswire-FirstCall/ -- CorVel Corporation , 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 7,100,000.
CorVel commenced its share repurchase program in the fall of 1996. Since that time, the Company has spent $107 million to repurchase 5,959,468 shares, equal to 37% of the outstanding common stock. These purchases have been funded primarily from net earnings. CorVel had 10,307,557 shares of common stock outstanding as of December 31, 2004.
“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. CorVel serves over 2,000 clients through its 150 offices and 3,100 employees nationwide.
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
CONTACT: Richard Schweppe of CorVel Corporation, +1-949-851-1473
Web site: http://www.corvel.com/