Crawford & Company Reports 2024 Second Quarter Results
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
Segment Results for the Second Quarter
North America Loss Adjusting
North America Loss Adjusting revenues before reimbursements were
The segment had operating earnings of
International Operations
International Operations revenues before reimbursements were
Operating earnings were
Platform Solutions
Platform Solutions revenues before reimbursements were
Operating earnings were
Unallocated Corporate and Shared Costs and Credits, Net
Unallocated corporate costs were
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses (“SG&A”) increased
Other Matters
The Company recognized pretax contingent earnout expenses totaling
The Company recognized non-service pension costs of
Balance Sheet and Cash Flow
The Company’s consolidated cash and cash equivalents position as of
The Company’s operations used
The Company made no contributions to its
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
Conference Call
As previously announced, Crawford & Company will host a conference call on
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
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
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) |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Geographic Area |
Currency |
USD equivalent |
|
% of total |
|
|
USD equivalent |
|
% of total |
|
|
USD equivalent |
|
% of total |
|
|
USD equivalent |
|
% of total |
|
||||||||
|
USD |
$ |
189,743 |
|
|
60.4 |
% |
|
$ |
204,854 |
|
|
63.1 |
% |
|
$ |
369,464 |
|
|
60.0 |
% |
|
$ |
404,711 |
|
|
63.1 |
% |
|
GBP |
|
41,420 |
|
|
13.2 |
% |
|
|
34,725 |
|
|
10.7 |
% |
|
|
81,675 |
|
|
13.3 |
% |
|
|
67,849 |
|
|
10.6 |
% |
|
CAD |
|
22,201 |
|
|
7.1 |
% |
|
|
24,390 |
|
|
7.5 |
% |
|
|
46,042 |
|
|
7.5 |
% |
|
|
49,004 |
|
|
7.6 |
% |
|
AUD |
|
22,316 |
|
|
7.1 |
% |
|
|
22,926 |
|
|
7.1 |
% |
|
|
41,977 |
|
|
6.8 |
% |
|
|
45,920 |
|
|
7.2 |
% |
|
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) |
|
|
|
|
|
||||||||
Operating earnings: |
|
|
|
|
|
|
|
|
|
||||
North America Loss Adjusting |
$ |
4,885 |
|
$ |
3,900 |
|
|
$ |
9,364 |
|
$ |
11,965 |
|
International Operations |
|
5,702 |
|
|
3,742 |
|
|
|
7,392 |
|
|
6,777 |
|
|
|
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) |
|
|
|
|
|
||||||||
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
Six Months Ended |
|
||||||||||
(in thousands) |
|
|
|
|
Change |
||||||
|
$ |
(8,253 |
) |
|
$ |
27,169 |
|
|
$ |
(35,422 |
) |
Less: |
|
|
|
|
|
|
|
|
|||
Property & Equipment Purchases, net |
|
(1,418 |
) |
|
|
(1,914 |
) |
|
|
496 |
|
|
|
(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 |
|
|||||||||||
(in thousands) |
Pretax earnings |
Net income
|
Diluted earnings per
|
Diluted earnings per
|
||||||||
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 |
|
|||||||||||
(in thousands) |
Pretax earnings |
Net income
|
Diluted earnings per
|
Diluted earnings per
|
||||||||
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 |
|
|||||||||||
(in thousands) |
Pretax earnings |
Net income
|
Diluted earnings per
|
Diluted earnings per
|
||||||||
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 |
|
|||||||||||
(in thousands) |
Pretax earnings |
Net income
|
Diluted
|
Diluted
|
||||||||
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) |
|
|
|
|
||||||||
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
About Crawford & Company
Based in
TAG: Crawford-Financial,
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 |
CRAWFORD & COMPANY |
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
Unaudited |
||||||||||||
(In Thousands, Except Per Share Amounts and Percentages) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||
Three Months Ended |
|
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 |
|
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 |
||||||||
Unaudited |
||||||||
(In Thousands, Except Par Values) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
|
|
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 |
|
|
|
|
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, |
|
|
29,743 |
|
|
|
29,525 |
|
Class B Common Stock, |
|
|
19,324 |
|
|
|
19,555 |
|
|
|
|
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 |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
North America Loss
|
|
% |
|
International Operations |
|
% |
|
|
|
% |
|
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 |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
North America Loss
|
|
|
% |
International Operations |
% |
|
|
|
|
% |
|
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 |
||||||||
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240805797420/en/
Media Contacts: mediarelations@us.crawco.com
+44 207 265 4067
Lynn.Cufley@crawco.uk
+1 470 792 5678
Katie.Cline@us.crawco.com
Investor Contact:
IMS Investor Relations
203 972 9200
crawford@imsinvestorrelations.com
Source: Crawford & Company