IRVINE, Calif., June 10 /PRNewswire-FirstCall/ -- CorVel Corporation (Nasdaq: CRVL), reported that the Company's Board of Directors has approved a 850,000 share expansion to its existing stock repurchase plan, increasing the total number of shares approved for repurchase to 15,000,000 shares.
CorVel commenced its share repurchase program in the fall of 1996. Since its inception through June 9, 2010, the Company has spent $223 million to repurchase 13,907,214 shares, equal to 54% of the outstanding common stock had there been no repurchases. These purchases have been funded primarily from the net earnings of the Company. CorVel had 12,026,502 shares of common stock, net of treasury shares, outstanding as of March 31, 2010.
"We have had a consistent practice of using the cash flow generated by the business to make strategic acquisitions to advance our long term growth strategy, or to re-purchase our outstanding common stock. The expansion of our existing stock re-purchase plan provides us ongoing flexibility in the future," said Dan Starck, CorVel's Chief Executive Officer.
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 could be used for general purposes, including issuance under the Company's stock option and stock purchase plans.
The Company also announced that pursuant to Board of Directors approval, the Company entered into a pre-arranged stock trading plan to repurchase shares of its common stock. The stock trading plan will be in accordance with guidelines specified under Rule 10b5-1 of the Securities and Exchange Act of 1934 and consistent with CorVel Corporation's policies regarding stock transactions. Rule 10b5-1 allows public companies to adopt written, pre-arranged stock trading plans when they do not have material, non-public information in their possession.
About CorVel
CorVel Corporation (http://www.corvel.com/) is a national provider of leading-edge services and solutions in the field of disability management. CorVel specializes in applying information technology and e-commerce applications to improve healthcare management in the workers' compensation, group health, and auto and disability management insurance markets. The Company provides claims administration, preferred providers networks, case management, utilization management, and medical bill review to more than 2,000 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 press release, 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, 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 results of operations, product investment strategies and expansion of directed care solutions. 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 press release and the Company's filings with the Securities and Exchange Commission, including but not limited to "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended March 31, 2009 and the Company's Quarterly Report on Form 10-Q for the quarters ended June 30, 2009, September 30, 2009 and December 31, 2009. The forward-looking statements in this press release 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.
SOURCE CorVel Corporation
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