Crawford & Company® (NYSE: CRD-A and CRD-B), is pleased to
announce its financial results for the second quarter ended June
30, 2024. Based in Atlanta, Crawford & Company (NYSE: CRD‐A and
CRD‐B) is a leading global provider of claims management and
outsourcing solutions to insurance companies and self‐insured
entities with an expansive network serving clients in more than 70
countries. Refer to the Company's website (www.crawco.com) for more
information.
Rohit Verma, president and chief executive officer of Crawford
& Company, commented, “Our growth strategy and initiatives are
yielding results. Despite a difficult comparison due to weather
events last year, three of our four business segments showed
operating earnings growth with improved margins in the quarter.
This enabled us to achieve consolidated earnings consistent with
last year and reflects Crawford’s diversified revenue model with a
healthy balance between weather and non-weather dependent
businesses. We added $23 million in new and enhanced business in
the quarter, and our pipeline remains robust. As we move through
the back half of 2024, I am optimistic about the overall direction
of the Company and believe we are well-positioned to drive enhanced
value for customers and shareholders."
GAAP Consolidated
Results
Second Quarter 2024
- Revenues before reimbursements of $314.2 million, compared to
$324.6 million for the 2023 second quarter
- Net income attributable to shareholders of $8.6 million,
increasing from the $8.4 million in the same period last year
- Diluted earnings per share of $0.17 for both CRD-A and CRD-B,
unchanged from diluted earnings per share of $0.17 for both share
classes in the prior year second quarter
Non-GAAP Consolidated
Results
Second Quarter 2024
- Diluted earnings per share, on a non-GAAP basis, totaled $0.25
for both CRD-A and CRD-B in the 2024 second quarter, compared with
$0.24 for both share classes in the prior year second quarter
- Net income attributable to shareholders, on a non-GAAP basis,
totaled $12.4 million in the 2024 second quarter, compared with
$12.0 million in the same period last year
- Consolidated adjusted operating earnings, on a non-GAAP basis,
were $22.1 million, or 7.0% of revenues before reimbursements in
the 2024 second quarter, compared with $22.8 million, or 7.0% of
revenues, in the 2023 second quarter
- Consolidated adjusted EBITDA, a non-GAAP financial measure, was
$30.6 million, or 9.7% of revenues before reimbursements in the
2024 second quarter, compared with $31.5 million, or 9.7% of
revenues, in the 2023 second quarter
- Foreign currency exchange rates decreased revenues before
reimbursements by $1.9 million or less than (1)%. Presented on a
constant dollar basis to the prior year period, revenues before
reimbursements totaled $316.1 million, decreasing (3)% from the
2023 second quarter
Mr. Verma continued, “Our second quarter performance was
highlighted by strong revenue growth and margin improvement at
Broadspire, resulting in another record quarter for this business.
Additionally, we achieved continued improvement over the prior year
period in our International Operations segment. Our North American
Loss Adjusting business achieved improved margin performance and
consistent revenues quarter over quarter, despite a decline in
extreme weather events, reflecting the segment’s increased market
share in the industry. The absence of severe weather continued to
impact weather-related demand for our Platform Solutions business
as carriers have capacity to meet current volumes. However, we
remain well positioned to respond to seasonal storm activity. Our
balance sheet remains strong, providing us flexibility to execute
our strategic growth strategy.”
Segment Results for the Second
Quarter
North America Loss Adjusting
North America Loss Adjusting revenues before reimbursements were
$76.0 million in the second quarter of 2024, decreasing (0.4)% from
$76.4 million in the second quarter of 2023.
The segment had operating earnings of $4.9 million in the 2024
second quarter, increasing from $3.9 million in the second quarter
of 2023. The operating margin was 6.4% in the 2024 quarter and 5.1%
in the 2023 quarter.
International Operations
International Operations revenues before reimbursements were
$102.3 million in the second quarter of 2024, up 7.3% from $95.3
million in the same period of 2023. Absent foreign exchange rate
decreases of $1.5 million, revenues would have been $103.7 million
for the 2024 second quarter.
Operating earnings were $5.7 million in the 2024 second quarter,
increasing from $3.7 million in the 2023 period. The segment’s
operating margin for the 2024 quarter was 5.6% as compared with
3.9% in the 2023 quarter.
Broadspire
Broadspire segment revenues before reimbursements were a new
quarterly record of $97.1 million in the 2024 second quarter,
increasing 11.3% from $87.2 million in the 2023 second quarter.
Broadspire recorded operating earnings of $15.1 million in the
second quarter of 2024, representing an operating margin of 15.5%,
increasing from $8.1 million, or 9.3% of revenues, in the 2023
second quarter.
Platform Solutions
Platform Solutions revenues before reimbursements were $38.8
million in the second quarter of 2024, down (40.8)% from $65.6
million in the same period of 2023 as the Networks service line had
significantly reduced weather related claim volumes.
Operating earnings were $1.5 million in the 2024 second quarter,
decreasing from the $8.1 million in the 2023 period. The segment’s
operating margin for the 2024 quarter was 3.8% as compared with
12.3% in the 2023 quarter.
Unallocated Corporate and Shared Costs and Credits,
Net
Unallocated corporate costs were $5.1 million in the second
quarter of 2024, compared with $1.1 million in the same period of
2023. The increase in the 2024 second quarter was primarily due to
an increase in professional fees and other reserves.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses (“SG&A”)
increased $1.8 million, or 2.6%, in the three months ended June 30,
2024 as compared with the 2023 period. The increase was primarily
due to professional fees, IT costs, and compensation expense,
including taxes and benefits.
Other Matters
The Company recognized pretax contingent earnout expenses
totaling $0.4 million in the 2024 second quarter, compared to $0.7
million in the same period of 2023, related to the fair value
adjustment of earnout liabilities arising from recent acquisitions.
This adjustment, which is not a component of operating earnings, is
based on favorable changes to projections of acquired entities over
the respective earnout periods, which span multiple years.
The Company recognized non-service pension costs of $2.4 million
in the 2024 second quarter compared with $2.1 million in the 2023
period. Non-service pension costs represent the U.S. and U.K.
non-service defined benefit pension costs, which are non-operating
in nature as the U.S. plan is frozen and the U.K. plans are closed
to new participants.
Balance Sheet and Cash
Flow
The Company’s consolidated cash and cash equivalents position as
of June 30, 2024, totaled $46.7 million, compared with $58.4
million at December 31, 2023. The Company’s total debt outstanding
as of June 30, 2024, totaled $233.8 million, compared with $209.1
million at December 31, 2023.
The Company’s operations used $8.3 million of cash during the
first six months of 2024, compared with $27.2 million provided in
2023. The increase in cash used was due primarily to $13.5 million
lower operating earnings, $16.7 million net change in incentive
compensation, and a $5.9 million increase in other working capital
items over the prior year.
The Company made no contributions to its U.S. defined benefit
pension plan and $1.2 million in contributions to its U.K. plans
for the first half of 2024, compared with no contributions to the
U.S. plan and $1.0 million to the U.K. plans in 2023.
During the first six months of 2024, the Company didn't
repurchase any shares of CRD-A, but repurchased 230,861 shares of
CRD-B at an average per share cost of $8.98. There were no shares
repurchased during the first six months of 2023. The total cost of
share repurchases during 2024 was $2.1 million.
Conference Call
As previously announced, Crawford & Company will host a
conference call on August 6, 2024, at 8:30 a.m. Eastern Time to
discuss its second quarter 2024 results. The conference call can be
accessed live by dialing 1-888-259-6580 and using Conference ID
95332233. A presentation for tomorrow’s call can also be found on
the investor relations portion of the Company’s website,
https://ir.crawco.com. The call will be recorded and available for
replay through September 5, 2024. You may dial 1-877-674-7070 and
use passcode 332233# to listen to the replay.
Non-GAAP Presentation
In the normal course of business, our operating segments incur
certain out-of-pocket expenses that are thereafter reimbursed by
our clients. Under U.S. generally accepted accounting principles
(“GAAP”), these out-of-pocket expenses and associated
reimbursements are required to be included when reporting expenses
and revenues, respectively, in our consolidated results of
operations. In the foregoing discussion and analysis of segment
results of operations, we do not include a gross up of segment
expenses and revenues for these pass-through reimbursed expenses.
The amounts of reimbursed expenses and related revenues offset each
other in our results of operations with no impact to our net income
or operating earnings. A reconciliation of revenues before
reimbursements to consolidated revenues determined in accordance
with GAAP is self-evident from the face of the accompanying
unaudited condensed consolidated statements of operations.
Operating earnings is the primary financial performance measure
used by our senior management and chief operating decision maker
(“CODM”) to evaluate the financial performance of our Company and
operating segments, and make resource allocation and certain
compensation decisions. Unlike net income, segment operating
earnings is not a standard performance measure found in GAAP. We
believe this measure is useful to others in that it allows them to
evaluate segment and consolidated operating performance using the
same criteria used by our senior management and CODM. Consolidated
operating earnings represent segment earnings including certain
unallocated corporate and shared costs, but before net corporate
interest expense, stock option expense, amortization of
acquisition-related intangible assets, contingent earnout
adjustments, non-service pension costs, income taxes and net income
or loss attributable to noncontrolling interests.
Adjusted EBITDA is not a term defined by GAAP and as a result
our measure of adjusted EBITDA might not be comparable to similarly
titled measures used by other companies. However, adjusted EBITDA
is used by management to evaluate, assess and benchmark our
operational results. The Company believes that adjusted EBITDA is
relevant and useful information widely used by analysts, investors
and other interested parties. Adjusted EBITDA is defined as net
income attributable to shareholders of the Company with adjustments
for depreciation and amortization, net corporate interest expense,
contingent earnout adjustments, non-service pension costs, income
taxes and stock-based compensation expense.
Unallocated corporate and shared costs and credits include
expenses and credits related to our chief executive officer and
Board of Directors, certain provisions for bad debt allowances or
subsequent recoveries such as those related to bankrupt clients,
certain unallocated professional fees and certain self-insurance
costs and recoveries that are not allocated to our individual
operating segments.
Income taxes, net corporate interest expense, stock option
expense, amortization of acquisition-related intangible assets,
contingent earnout adjustments, and non-service pension costs are
recurring components of our net income, but they are not considered
part of our segment operating earnings because they are managed on
a corporate-wide basis. Income taxes are calculated for the Company
on a consolidated basis based on statutory rates in effect in the
various jurisdictions in which we provide services and vary
significantly by jurisdiction. Net corporate interest expense
results from capital structure decisions made by senior management
and the Board of Directors, affecting the Company as a whole. Stock
option expense represents the non-cash costs generally related to
stock options and employee stock purchase plan expenses which are
not allocated to our operating segments. Amortization expense is a
non-cash expense for finite-lived customer-relationship and trade
name intangible assets acquired in business combinations.
Contingent earnout adjustments relate to changes in the fair value
of earnouts associated with our recent acquisitions. Non-service
pension costs represent the U.S. and U.K. non-service defined
benefit pension costs, which are non-operating in nature as the
U.S. plan was frozen in 2002 and the U.K. plans are closed to new
participants. None of these costs relate directly to the
performance of our services or operating activities and, therefore,
are excluded from segment operating earnings to better assess the
results of each segment's operating activities on a consistent
basis.
A significant portion of our operations are international. These
international operations subject us to foreign exchange
fluctuations. The following table illustrates revenue as a
percentage of total revenue for the major currencies of the
geographic areas that Crawford does business:
Three Months Ended
Six Months Ended
(in
thousands)
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Geographic Area
Currency
USD equivalent
% of total
USD equivalent
% of total
USD equivalent
% of total
USD equivalent
% of total
U.S.
USD
$
189,743
60.4
%
$
204,854
63.1
%
$
369,464
60.0
%
$
404,711
63.1
%
U.K.
GBP
41,420
13.2
%
34,725
10.7
%
81,675
13.3
%
67,849
10.6
%
Canada
CAD
22,201
7.1
%
24,390
7.5
%
46,042
7.5
%
49,004
7.6
%
Australia
AUD
22,316
7.1
%
22,926
7.1
%
41,977
6.8
%
45,920
7.2
%
Europe
EUR
15,661
5.0
%
14,301
4.4
%
30,546
5.0
%
28,339
4.4
%
Rest of World
Various
22,886
7.2
%
23,360
7.2
%
46,177
7.4
%
45,067
7.1
%
Total Revenues, before reimbursements
$
314,227
100.0
%
$
324,556
100.0
%
$
615,881
100.0
%
$
640,890
100.0
%
Following is a reconciliation of consolidated operating earnings
to net income attributable to shareholders of Crawford &
Company on a GAAP basis:
Three Months Ended
Six Months Ended
(in thousands)
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Operating earnings:
North America Loss Adjusting
$
4,885
$
3,900
$
9,364
$
11,965
International Operations
5,702
3,742
7,392
6,777
Broadspire
15,091
8,148
27,895
16,075
Platform Solutions
1,469
8,106
2,584
18,072
Unallocated corporate and shared costs,
net
(5,079
)
(1,098
)
(13,086
)
(5,217
)
Consolidated operating earnings
22,068
22,798
34,149
47,672
(Deduct) add:
Net corporate interest expense
(4,256
)
(4,309
)
(7,852
)
(8,708
)
Stock option expense
(139
)
(139
)
(306
)
(295
)
Amortization of intangible assets
(1,856
)
(1,979
)
(3,724
)
(3,878
)
Non-service pension costs
(2,399
)
(2,095
)
(4,872
)
(4,266
)
Contingent earnout adjustments
(430
)
(725
)
(581
)
(973
)
Income tax provision
(4,486
)
(5,206
)
(5,533
)
(10,477
)
Net loss attributable to noncontrolling
interests
82
82
140
33
Net income attributable to shareholders of
Crawford & Company
$
8,584
$
8,427
$
11,421
$
19,108
Following is a reconciliation of net income attributable to
shareholders of Crawford & Company on a GAAP basis to non-GAAP
adjusted EBITDA:
Three Months Ended
Six Months Ended
(in thousands)
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income attributable to shareholders of
Crawford & Company
$
8,584
$
8,427
$
11,421
$
19,108
Add:
Depreciation and amortization
8,845
9,191
18,144
18,241
Stock-based compensation
1,613
1,586
2,831
2,609
Net corporate interest expense
4,256
4,309
7,852
8,708
Non-service pension costs
2,399
2,095
4,872
4,266
Contingent earnout adjustments
430
725
581
973
Income tax provision
4,486
5,206
5,533
10,477
Non-GAAP adjusted EBITDA
$
30,613
$
31,539
$
51,234
$
64,382
Following is a reconciliation of operating cash flow to free
cash flow for the six months ended June 30, 2024 and 2023:
Six Months Ended
(in thousands)
June 30, 2024
June 30, 2023
Change
Net Cash (Used in) Provided by Operating
Activities
$
(8,253
)
$
27,169
$
(35,422
)
Less:
Property & Equipment Purchases,
net
(1,418
)
(1,914
)
496
Capitalized Software (internal and
external costs)
(17,031
)
(16,031
)
(1,000
)
Free Cash Flow
$
(26,702
)
$
9,224
$
(35,926
)
Non-GAAP consolidated results for 2024 and 2023 exclude the
non-cash, after-tax adjustments for amortization of intangible
assets, non-service-related pension costs, and contingent earnout
adjustment.
Following are the reconciliations of GAAP Pretax Earnings, Net
Income and Earnings Per Share to related non-GAAP Adjusted figures,
which reflect each of 2024 and 2023 before amortization of
intangible assets, non-service related pension costs and contingent
earnout adjustments:
Three Months Ended June 30,
2024
(in
thousands)
Pretax earnings
Net income attributable to
Crawford & Company
Diluted earnings per CRD-A
share
Diluted earnings per CRD-B
share
GAAP
$
12,988
$
8,584
$
0.17
$
0.17
Adjustments:
Amortization of intangible assets
1,856
1,565
0.03
0.03
Non-service related pension costs
2,399
1,876
0.04
0.04
Contingent earnout adjustments
430
423
0.01
0.01
Non-GAAP Adjusted
$
17,673
$
12,448
$
0.25
$
0.25
Three Months Ended June 30,
2023
(in thousands)
Pretax earnings
Net income attributable to
Crawford & Company
Diluted earnings per CRD-A
share
Diluted earnings per CRD-B
share
GAAP
$
13,551
$
8,427
$
0.17
$
0.17
Adjustments:
Amortization of intangible assets
1,979
1,484
0.03
0.03
Non-service related pension costs
2,095
1,557
0.03
0.03
Contingent earnout adjustments
725
537
0.01
0.01
Non-GAAP Adjusted
$
18,350
$
12,005
$
0.24
$
0.24
Six Months Ended June 30,
2024
(in thousands)
Pretax earnings
Net income attributable to
Crawford & Company
Diluted earnings per CRD-A
share
Diluted earnings per CRD-B
share
GAAP
$
16,814
$
11,421
$
0.23
$
0.23
Adjustments:
Amortization of intangible assets
3,724
3,139
0.06
0.06
Non-service related pension costs
4,872
3,805
0.08
0.08
Contingent earnout adjustments
581
574
0.01
0.01
Non-GAAP Adjusted
$
25,991
$
18,939
$
0.38
$
0.38
Six Months Ended June 30,
2023
(in thousands)
Pretax earnings
Net income attributable to
Crawford & Company
Diluted earnings per CRD-A
share(1)
Diluted earnings per CRD-B
share
GAAP
$
29,552
$
19,108
$
0.39
$
0.39
Adjustments:
Amortization of intangible assets
3,878
2,909
0.06
0.06
Non-service related pension costs
4,266
3,170
0.06
0.06
Contingent earnout adjustments
973
720
0.02
0.02
Non-GAAP Adjusted
$
38,669
$
25,907
$
0.52
$
0.53
(1) Sum of reconciling items may differ
from total due to rounding of individual components.
Following is information regarding the weighted average shares
used in the computation of basic and diluted earnings per
share:
Three Months Ended
Six Months Ended
(in
thousands)
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Weighted-Average Shares Used to Compute
Basic Earnings Per Share:
Class A Common Stock
29,728
28,956
29,657
28,899
Class B Common Stock
19,374
19,848
19,458
19,848
Weighted-Average Shares Used to Compute
Diluted Earnings Per Share:
Class A Common Stock
30,171
29,770
30,225
29,456
Class B Common Stock
19,374
19,848
19,458
19,848
Further information regarding the Company’s operating results
for the three and six months ended June 30, 2024, financial
position as of June 30, 2024, and cash flows for the six months
ended June 30, 2024 is shown on the attached unaudited condensed
consolidated financial statements.
About Crawford &
Company
Based in Atlanta, Crawford & Company (NYSE: CRD-A and CRD-B)
is a leading provider of claims management and outsourcing
solutions to insurance companies and self-insured entities with an
expansive network serving clients in more than 70 countries. The
Company's two classes of stock are substantially identical, except
with respect to voting rights for the Class B Common Stock (CRD-B)
and protections for the non-voting Class A Common Stock (CRD-A).
More information is available at www.crawco.com.
TAG: Crawford-Financial, Crawford-Investor-News-and-Events
FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE
CALL BRUCE SWAIN AT (404) 300-1051.
This press release contains
forward-looking statements, including statements about the expected
future financial condition, results of operations and earnings
outlook of Crawford & Company. Statements, both qualitative and
quantitative, that are not historical facts may be “forward-looking
statements” as defined in the Private Securities Litigation Reform
Act of 1995 and other federal securities laws. Forward-looking
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from historical
experience or Crawford & Company’s present expectations.
Accordingly, no one should place undue reliance on forward-looking
statements, which speak only as of the date on which they are made.
Crawford & Company does not undertake to update forward-looking
statements to reflect the impact of circumstances or events that
may arise or not arise after the date the forward-looking
statements are made. For further information regarding Crawford
& Company, including factors that could cause our actual
financial condition, results or earnings to differ from those
described in any forward-looking statements, please read Crawford
& Company’s reports filed with the SEC and available at
www.sec.gov and in the Investor Relations section of Crawford &
Company’s website at www.crawco.com.
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Unaudited
(In Thousands, Except Per Share
Amounts and Percentages)
Three Months Ended June 30,
2024
2023
% Change
Revenues:
Revenues Before Reimbursements
$
314,227
$
324,556
(3
)%
Reimbursements
12,626
13,073
(3
)%
Total Revenues
326,853
337,629
(3
)%
Costs and Expenses:
Costs of Services Provided, Before
Reimbursements
222,265
234,031
(5
)%
Reimbursements
12,626
13,073
(3
)%
Total Costs of Services
234,891
247,104
(5
)%
Selling, General, and Administrative
Expenses
72,270
70,473
3
%
Corporate Interest Expense, Net
4,256
4,309
(1
)%
Total Costs and Expenses
311,417
321,886
(3
)%
Other Loss, Net
(2,448
)
(2,192
)
12
%
Income Before Income Taxes
12,988
13,551
(4
)%
Provision for Income Taxes
4,486
5,206
(14
)%
Net Income
8,502
8,345
2
%
Net Loss Attributable to Noncontrolling
Interests
82
82
—
Net Income Attributable to Shareholders of
Crawford & Company
$
8,584
$
8,427
2
%
Earnings Per Share - Basic:
Class A Common Stock
$
0.17
$
0.17
—
Class B Common Stock
$
0.17
$
0.17
—
Earnings Per Share - Diluted:
Class A Common Stock
$
0.17
$
0.17
—
Class B Common Stock
$
0.17
$
0.17
—
Cash Dividends Per Share:
Class A Common Stock
$
0.07
$
0.06
17
%
Class B Common Stock
$
0.07
$
0.06
17
%
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Unaudited
(In Thousands, Except Per Share
Amounts and Percentages)
Six Months Ended June
30,
2024
2023
% Change
Revenues:
Revenues Before Reimbursements
$
615,881
$
640,890
(4
)%
Reimbursements
24,045
24,677
(3
)%
Total Revenues
639,926
665,567
(4
)%
Costs and Expenses:
Costs of Services Provided, Before
Reimbursements
436,654
461,109
(5
)%
Reimbursements
24,045
24,677
(3
)%
Total Costs of Services
460,699
485,786
(5
)%
Selling, General, and Administrative
Expenses
149,590
137,184
9
%
Corporate Interest Expense, Net
7,852
8,708
(10
)%
Total Costs and Expenses
618,141
631,678
(2
)%
Other Loss, Net
(4,971
)
(4,337
)
15
%
Income Before Income Taxes
16,814
29,552
(43
)%
Provision for Income Taxes
5,533
10,477
(47
)%
Net Income
11,281
19,075
(41
)%
Net Loss Attributable to Noncontrolling
Interests
140
33
324
%
Net Income Attributable to Shareholders of
Crawford & Company
$
11,421
$
19,108
(40
)%
Earnings Per Share - Basic:
Class A Common Stock
$
0.23
$
0.39
(41
)%
Class B Common Stock
$
0.23
$
0.39
(41
)%
Earnings Per Share - Diluted:
Class A Common Stock
$
0.23
$
0.39
(41
)%
Class B Common Stock
$
0.23
$
0.39
(41
)%
Cash Dividends Per Share:
Class A Common Stock
$
0.14
$
0.12
17
%
Class B Common Stock
$
0.14
$
0.12
17
%
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED BALANCE
SHEETS
As of June 30, 2024 and
December 31, 2023
Unaudited
(In Thousands, Except Par
Values)
June 30,
December 31,
2024
2023
ASSETS
Current Assets:
Cash and Cash Equivalents
$
46,742
$
58,363
Accounts Receivable, Net
133,847
131,362
Unbilled Revenues, at Estimated Billable
Amounts
131,119
116,611
Income Taxes Receivable
4,894
4,842
Prepaid Expenses and Other Current
Assets
35,393
58,168
Total Current Assets
351,995
369,346
Net Property and Equipment
20,365
22,742
Other Assets:
Operating Lease Right-of-Use Asset,
Net
83,175
88,615
Goodwill
76,572
76,724
Intangible Assets Arising from Business
Acquisitions, Net
78,127
81,786
Capitalized Software Costs, Net
103,884
96,770
Deferred Income Tax Assets
25,456
26,247
Other Noncurrent Assets
46,238
36,969
Total Other Assets
413,452
407,111
Total Assets
$
785,812
$
799,199
LIABILITIES AND SHAREHOLDERS’
INVESTMENT
Current Liabilities:
Short-Term Borrowings
$
24,425
$
14,813
Accounts Payable
43,378
45,107
Accrued Compensation and Related Costs
77,828
97,842
Self-Insured Risks
19,332
33,238
Income Taxes Payable
—
6,130
Operating Lease Liability
24,411
24,351
Other Accrued Liabilities
46,657
42,271
Deferred Revenues
36,193
35,540
Total Current Liabilities
272,224
299,292
Noncurrent Liabilities:
Long-Term Debt and Finance Leases, Less
Current Installments
209,410
194,335
Operating Lease Liability
70,888
78,029
Deferred Revenues
23,768
24,871
Accrued Pension Liabilities
23,221
24,006
Other Noncurrent Liabilities
36,594
38,835
Total Noncurrent Liabilities
363,881
360,076
Shareholders’ Investment:
Class A Common Stock, $1.00 Par Value
29,743
29,525
Class B Common Stock, $1.00 Par Value
19,324
19,555
Additional Paid-in Capital
85,461
82,589
Retained Earnings
231,263
228,564
Accumulated Other Comprehensive Loss
(214,402
)
(218,615
)
Shareholders’ Investment Attributable to
Shareholders of Crawford & Company
151,389
141,618
Noncontrolling Interests
(1,682
)
(1,787
)
Total Shareholders’ Investment
149,707
139,831
Total Liabilities and Shareholders’
Investment
$
785,812
$
799,199
CRAWFORD & COMPANY
SUMMARY RESULTS BY OPERATING
SEGMENT WITH DIRECT COMPENSATION AND OTHER EXPENSES
Unaudited
(In Thousands, Except
Percentages)
Three Months Ended June
30,
North America Loss Adjusting
%
International Operations
%
Broadspire
%
Platform Solutions
%
2024
2023
Change
2024
2023
Change
2024
2023
Change
2024
2023
Change
Revenues Before Reimbursements
$
76,030
$
76,362
(0.4
)%
$
102,283
$
95,312
7.3
%
$
97,087
$
87,244
11.3
%
$
38,827
$
65,638
(40.8
)%
Direct Compensation, Fringe Benefits &
Non-Employee Labor
54,708
54,619
0.2
%
66,047
62,331
6.0
%
58,162
54,500
6.7
%
23,404
43,689
(46.4
)%
% of Revenues Before Reimbursements
72.0
%
71.5
%
64.6
%
65.4
%
59.9
%
62.5
%
60.3
%
66.6
%
Expenses Other than Reimbursements, Direct
Compensation, Fringe Benefits & Non-Employee Labor
16,437
17,843
(7.9
)%
30,534
29,239
4.4
%
23,834
24,596
(3.1
)%
13,954
13,843
0.8
%
% of Revenues Before Reimbursements
21.6
%
23.4
%
29.9
%
30.7
%
24.5
%
28.2
%
35.9
%
21.1
%
Total Operating Expenses
71,145
72,462
(1.8
)%
96,581
91,570
5.5
%
81,996
79,096
3.7
%
37,358
57,532
(35.1
)%
Operating Earnings (1)
$
4,885
$
3,900
25.3
%
$
5,702
$
3,742
52.4
%
$
15,091
$
8,148
85.2
%
$
1,469
$
8,106
(81.9
)%
% of Revenues Before Reimbursements
6.4
%
5.1
%
5.6
%
3.9
%
15.5
%
9.3
%
3.8
%
12.3
%
Six Months Ended June
30,
North America Loss Adjusting
%
International Operations
%
Broadspire
%
Platforms Solutions
%
2024
2023
Change
2024
2023
Change
2024
2023
Change
2024
2023
Change
Revenues Before Reimbursements
$
153,395
$
153,959
(0.4
)%
$
200,375
$
187,175
7.1
%
$
191,385
$
171,298
11.7
%
$
70,726
$
128,458
(44.9
)%
Direct Compensation, Fringe Benefits &
Non-Employee Labor
110,175
108,783
1.3
%
131,026
123,752
5.9
%
115,419
107,141
7.7
%
42,334
84,600
(50.0
)%
% of Revenues Before Reimbursements
71.8
%
70.7
%
65.4
%
66.1
%
60.3
%
62.5
%
59.9
%
65.9
%
Expenses Other than Reimbursements, Direct
Compensation, Fringe Benefits & Non-Employee Labor
33,856
33,211
1.9
%
61,957
56,646
9.4
%
48,071
48,082
(0.0
)%
25,808
25,786
0.1
%
% of Revenues Before Reimbursements
22.1
%
21.6
%
30.9
%
30.3
%
25.1
%
28.1
%
36.5
%
20.1
%
Total Operating Expenses
144,031
141,994
1.4
%
192,983
180,398
7.0
%
163,490
155,223
5.3
%
68,142
110,386
(38.3
)%
Operating Earnings(1)
$
9,364
$
11,965
(21.7
)%
$
7,392
$
6,777
9.1
%
$
27,895
$
16,075
73.5
%
$
2,584
$
18,072
(85.7
)%
% of Revenues Before Reimbursements
6.1
%
7.8
%
3.7
%
3.6
%
14.6
%
9.4
%
3.7
%
14.1
%
(1) A non-GAAP financial measurement which
represents net income attributable to the applicable reporting
segment excluding income taxes, net corporate interest expense,
stock option expense, amortization of acquisition-related
intangible assets, non-service pension costs, contingent earnout
adjustments, and certain unallocated corporate and shared costs and
credits. See pages 3 and 4 for additional information about segment
operating earnings.
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Year-to-Date Period Ended June
30, 2024 and June 30, 2023
Unaudited
(In Thousands)
2024
2023
Cash Flows From Operating
Activities:
Net Income
$
11,281
$
19,075
Reconciliation of net income to net cash
(used in) provided by operating activities:
Depreciation and amortization
18,145
18,241
Stock-based compensation
2,831
2,609
(Gain) loss on disposal of property and
equipment
(80
)
116
Contingent earnout adjustments
581
973
Changes in operating assets and
liabilities:
Accounts receivable, net
(2,537
)
(15,107
)
Unbilled revenues, net
(14,234
)
1,828
Accrued or prepaid income taxes
(6,652
)
(1,217
)
Accounts payable and accrued
liabilities
(22,336
)
(3,928
)
Deferred revenues
(798
)
4,529
Accrued retirement costs
1,581
750
Prepaid expenses and other operating
activities
3,965
(700
)
Net cash (used in) provided by operating
activities
(8,253
)
27,169
Cash Flows From Investing
Activities:
Acquisitions of property and equipment
(1,418
)
(1,914
)
Capitalization of computer software
costs
(17,031
)
(16,031
)
Net cash used in investing activities
(18,449
)
(17,945
)
Cash Flows From Financing
Activities:
Cash dividends paid
(6,880
)
(5,854
)
Repurchases of common stock
(2,073
)
—
Increases in short-term and revolving
credit facility borrowings
48,592
20,958
Payments on short-term and revolving
credit facility borrowings
(23,769
)
(18,879
)
Payments of contingent consideration on
acquisitions
(579
)
(4,916
)
Other financing activities
364
213
Net cash provided by (used in) financing
activities
15,655
(8,478
)
Effects of exchange rate changes on cash
and cash equivalents
(155
)
1,062
(Decrease) Increase in cash, cash
equivalents, and restricted cash(1)
(11,202
)
1,808
Cash, cash equivalents, and restricted
cash at beginning of year(1)
59,545
46,645
Cash, cash equivalents, and restricted
cash at end of period(1)
$
48,343
$
48,453
(1) The 2024 amounts include beginning
restricted cash of $1,182 at December 31, 2023, and ending
restricted cash of $1,601 at June 30, 2024, and the 2023 amounts
include beginning restricted cash of $638 at December 31, 2022, and
ending restricted cash of $974 at June 30, 2023, which we present
as part of "Prepaid expenses and other current assets" on the
Balance Sheets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805797420/en/
Media Contacts: mediarelations@us.crawco.com Lynn Cufley
+44 207 265 4067 Lynn.Cufley@crawco.uk Katie Cline +1 470 792 5678
Katie.Cline@us.crawco.com Investor Contact: Jennifer
Belodeau/Rosalyn Christian IMS Investor Relations 203 972 9200
crawford@imsinvestorrelations.com