UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2018 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | |-----------------------------------------------------------------------------------------------------|----------------------------------- ...

Financial Data and Key Metrics Changes - Pretax earnings increased by 34.5% compared to the quarter ended December 31, 2017 [11] - Earnings per share for the quarter ended December 31, 2018 were $0.54, up 34.5% from the same quarter of the prior year excluding tax rate differences [11] - Revenues for the December quarter were $146.1 million, a 3.8% increase from $140.7 million in the December 2017 quarter [12] - The company repurchased 186,574 shares for a total price of $11.3 million during the quarter [28] Business Line Data and Key Metrics Changes - Revenue for patient management, which includes third-party administration services and traditional case management, reached a record $92.1 million, an annual increase of 16.1% [26] - Gross profit for patient management increased by 87.2% from the December quarter of 2017 [26] - Revenue for network solutions sold in the wholesale market was $54 million, down 12.1% from the same quarter of the prior year [27] - Gross profit in the wholesale business decreased by 17.2% year-over-year, primarily due to churn in the government segment [27] Market Data and Key Metrics Changes - The company is focusing on developing private sector carrier wholesale accounts due to losses in government accounts [13] - The telehealth services adoption in the workers' compensation industry has increased, aligning with growth in personal healthcare [15] Company Strategy and Development Direction - The company aims to improve patient experiences and outcomes in healthcare benefits programs by leveraging technology and innovative service models [3][6] - CorVel is focused on integrating its telehealth platform across managed care components to enhance scalability and patient outcomes [17] - The company is expanding its core products in the group health market and intends to deepen client partnerships through additional services [21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the complexity of the healthcare economic model and the need for innovative solutions to improve outcomes [4][8] - The company is optimistic about the effectiveness of its new processes and their visibility in sales results [6] - Management noted the increasing importance of data analytics and machine learning in enhancing service delivery [19] Other Important Information - The company continues to invest in technology and systems to improve operational efficiency and service delivery [14] - SYMBEO operations closed the final quarter of 2018 with strong performance and plans to diversify its partner ecosystem in 2019 [22] Q&A Session Summary Question: What are the trends in the workers' compensation industry? - Management noted the increasing adoption of telehealth services and the advocacy model for claims management, which focuses on timely care for injured workers [15][18] Question: How is CorVel positioned in the healthcare market? - Management emphasized CorVel's unique service model and competitive positioning that allows for long-term growth despite occasional losses [13]