Irvine, CA – CorVel Corporation (CRVL — NASDAQ National Market), recently reported that the Company’s Board of Directors has approved a 2,000,000 share expansion to its existing stock repurchase plan, increasing the total number of shares approved for repurchase to 34,000,000 shares from the previous limit of 32,000,000 shares.
CorVel commenced its share repurchase program in the fall of 1996. Since its inception through June 30, 2013, the Company has spent $309 million to repurchase 31,602,553 shares, equal to 60% 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 21,298,885 shares of common stock, net of treasury shares, outstanding as of June 30, 2013. Each of these share numbers reflect the two-for-one stock split in the form of a 100% dividend which was declared on June 12, 2013 and paid on June 26, 2013.
The Company also announced that pursuant to Board of Directors approval, the Company entered into a pre-arranged stock trading plan to spend up to $14 million to repurchase shares of its common stock commencing August 22, 2013 through November 22, 2013. 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 allows 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.