IRVINE, Calif., Nov. 12, 2015 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL ), 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 over the life of such plan to 35,000,000 shares from the previous limit of 34,000,000 shares. Based upon the Company’s closing price on November 11, this increase in the number of shares authorized to be repurchased over time would cost approximately $35 million. As of September 30, 2015, the Company had $25 million in cash on the balance sheet and no debt.
CorVel commenced its share repurchase program in the fall of 1996. Since its inception through September 30, 2015, the Company has spent $379 million to repurchase 33,552,190 shares, equal to 63% of the outstanding common stock had there been no repurchases. The Company spent $18.8 million to repurchase 559,702 shares during the six months ended September 30, 2015, for an average price of $33.55 per share. These purchases have been funded primarily from the net earnings of the Company. CorVel had 19,787,279 shares of common stock, net of treasury shares, outstanding as of September 30, 2015.
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 commencing November 28, 2015 through February 25, 2016, subject to certain limitations. The stock trading plan will be in accordance with guidelines specified under Rule 10b5-1 and Rule 10b-18 of the Securities and Exchange Act of 1934 and consistent with CorVel Corporation’s policies regarding stock transactions. Rule 10b5-1 provides a safe harbor for public companies to adopt written, pre-arranged stock trading plans when they do not have material, non-public information in their possession. All bids and the amounts purchased shall at all times be consistent and compliant with the pricing and volume limitations of Rule 10b-18.
The shares authorized to be repurchased under the repurchase program may be purchased from time to time at prevailing market prices, through open market, block trade 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 repurchases at any time that management determines additional repurchases are not warranted. The repurchased shares may be used for general purposes, including issuance under the Company’s stock option and employee stock purchase plans, although historically repurchased shares have remained in treasury.
About CorVel
CorVel Corporation is a national provider of innovative workers’ compensation, auto, liability and health solutions for employers, third party administrators, insurance companies, and government agencies seeking to control costs and promote positive outcomes. We apply technology, intelligence, and a human touch throughout the risk management process so our clients can intervene early and often while being connected to the critical intelligence they need to proactively manage risk. With a robust technology platform at its core, our connected solution is delivered by a national team of associates who are committed to helping clients design and administer programs that meet their organization’s performance goals.
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, 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 and business and the Company’s stock repurchase plan. 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, the risk that repurchases will not be made under the Company’s stock repurchase plan, or will be made at unfavorable prices and the 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, 2015 and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. 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.
Contact: Heather Burnham Phone: 949-851-1473 http://www.corvel.com
