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Crawford & Company Reports 2024 First Quarter Results

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Crawford & Company, a global claims management provider, reported its Q1 2024 financial results. Despite lower revenues and net income, the company highlighted strong performances in non-weather driven businesses. The company's balance sheet remains strong, with ample liquidity and conservative debt management. The PR also revealed segment results and cash flow details.

Crawford & Company, un fornitore globale di gestione dei sinistri, ha comunicato i risultati finanziari del primo trimestre 2024. Nonostante una riduzione dei ricavi e del reddito netto, l'azienda ha evidenziato ottime performance nei settori non influenzati dalle condizioni meteorologiche. Il bilancio aziendale rimane solido, con ampia liquidità e una gestione del debito prudente. Il comunicato stampa ha inoltre fornito dettagli sui risultati per segmento e sulla situazione dei flussi di cassa.
Crawford & Company, un proveedor global de gestión de reclamos, informó los resultados financieros del primer trimestre de 2024. A pesar de los menores ingresos y beneficio neto, la empresa destacó un fuerte rendimiento en los negocios no afectados por el clima. El balance de la compañía sigue siendo fuerte, con una buena liquidez y una gestión conservadora de la deuda. Además, el comunicado de prensa reveló los resultados por segmentos y los detalles del flujo de caja.
Crawford & Company, 글로벌 클레임 관리 제공 업체, 2024년 1분기 재무 결과를 보고했습니다. 수익과 순이익이 감소했지만 회사는 기상에 영향을 받지 않는 사업에서 강력한 성과를 강조했습니다. 회사의 재무 상태는 여전히 강력하며 충분한 유동성과 보수적인 부채 관리를 유지하고 있습니다. 보도 자료는 또한 부문별 결과와 현금 흐름 상세 정보를 공개했습니다.
Crawford & Company, un fournisseur mondial de gestion des sinistres, a rapporté ses résultats financiers pour le premier trimestre 2024. Malgré des revenus et un résultat net inférieurs, l'entreprise a souligné de solides performances dans les activités non liées aux conditions météorologiques. Le bilan de l'entreprise reste solide, avec une liquidité abondante et une gestion prudente de la dette. Le communiqué de presse a également révélé les résultats par segment et les détails des flux de trésorerie.
Crawford & Company, ein globaler Anbieter für Schadensmanagement, berichtete über seine finanziellen Ergebnisse für das erste Quartal 2024. Trotz niedrigerer Umsätze und Nettoeinkommen betonte das Unternehmen starke Leistungen in Geschäftsbereichen, die nicht wetterabhängig sind. Die Bilanz des Unternehmens bleibt stark, mit reichlicher Liquidität und konservativem Schuldenmanagement. Die Pressemitteilung gab auch Einblicke in die Segmentergebnisse und die Details zum Cashflow.
Positive
  • Strong performance in non-weather driven businesses despite revenue decline

  • Record revenue quarter from Broadspire and U.S. GTS service line

  • Continued revenue growth in International Operations segment

  • Ample liquidity and conservative debt management

  • Strong relationships and brand recognition for long-term strategic success

Negative
  • Decrease in revenues and net income compared to the previous year

  • Operating earnings decline in certain segments

  • Platform Solutions revenues declined significantly

  • Increased selling, general, and administrative expenses

  • Higher cash used in operations compared to the previous year

ATLANTA--(BUSINESS WIRE)-- Crawford & Company® (NYSE: CRD-A and CRD-B), is pleased to announce its financial results for the first quarter ended March 31, 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. 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 on the Company's website.

Mr. Rohit Verma, president and chief executive officer of Crawford & Company, commented, “Our first quarter results came in largely as expected and reflect the continued absence of significant severe weather activity, a trend which began in the back half of 2023 and has persisted through the first quarter of 2024. Despite the difficult comparison created by the absence of catastrophic weather, our non-weather driven businesses delivered strong first quarter results. These included another record revenue quarter from Broadspire and the U.S. GTS service line, and continued progress in our International Operations segment where revenue growth continued in the quarter. The seasonal weather impacted North America Loss Adjusting where revenues remained consistent with the first quarter of last year and Platform Solutions revenues declined as anticipated, directly related to the absence of approximately $30 million in catastrophe revenues which did not repeat in the first quarter of 2024."

GAAP Consolidated Results

First Quarter 2024

  • Revenues before reimbursements of $301.7 million, down (5)% from $316.3 million for the 2023 first quarter
  • Net income attributable to shareholders of $2.8 million, decreasing from the $10.7 million in the same period last year
  • Diluted earnings per share of $0.06 for both CRD-A and CRD-B, compared with diluted earnings per share of $0.22 for both share classes in the prior year first quarter

Non-GAAP Consolidated Results

First Quarter 2024

  • Diluted earnings per share, on a non-GAAP basis, totaled $0.13 for both CRD-A and CRD-B in the 2024 first quarter, compared with $0.28 for both share classes in the prior year first quarter
  • Net income attributable to shareholders, on a non-GAAP basis, totaled $6.5 million in the 2024 first quarter, compared with $13.9 million in the same period last year
  • Consolidated adjusted operating earnings, on a non-GAAP basis, were $12.1 million, or 4.0% of revenues before reimbursements in the 2024 first quarter, compared with $24.9 million, or 7.9% of revenues, in the 2023 first quarter
  • Consolidated adjusted EBITDA, a non-GAAP financial measure, was $20.6 million, or 6.8% of revenues before reimbursements in the 2024 first quarter, compared with $32.8 million, or 10.4% of revenues, in the 2023 first quarter
  • Foreign currency exchange rates increased revenues before reimbursements by $0.9 million or less than 1%. Presented on a constant dollar basis to the prior year period, revenues before reimbursements totaled $300.7 million, decreasing (5)% from the 2023 first quarter

Mr. Verma continued, “The strength of our underlying non-weather business provides a solid foundation to balance periodic revenue shifts directly related to the variability of catastrophic weather events. Importantly, our balance sheet remains strong, reflected in our ample liquidity and conservatively managed debt which position us to capitalize on opportunities as we move through 2024. With the strength of our relationships and our brand recognition as a valued partner in the market, we are well positioned to drive growth and long-term strategic success.”

Segment Results for the First Quarter

North America Loss Adjusting

North America Loss Adjusting revenues before reimbursements were $77.4 million in the first quarter of 2024, decreasing (0.3)% from $77.6 million in the first quarter of 2023.

The segment had operating earnings of $4.5 million in the 2024 first quarter, decreasing from $8.1 million in the first quarter of 2023. The operating margin was 5.8% in the 2024 quarter and 10.4% in the 2023 quarter.

International Operations

International Operations revenues before reimbursements were $98.1 million in the first quarter of 2024, up 6.8% from $91.9 million in the same period of 2023. Absent foreign exchange rate decreases of $0.9 million, revenues would have been $97.2 million for the 2024 first quarter.

Operating earnings were $1.7 million in the 2024 first quarter, compared to $3.0 million in the 2023 period. The segment’s operating margin for the 2024 quarter was 1.7% as compared with 3.3% in the 2023 quarter.

Broadspire

Broadspire segment revenues before reimbursements were a new quarterly record of $94.3 million in the 2024 first quarter, increasing 12.2% from $84.1 million in the 2023 first quarter.

Broadspire recorded operating earnings of $12.8 million in the first quarter of 2024, representing an operating margin of 13.6%, increasing from $7.9 million, or 9.4% of revenues, in the 2023 first quarter.

Platform Solutions

Platform Solutions revenues before reimbursements were $31.9 million in the first quarter of 2024, down (49.2)% from $62.8 million in the same period of 2023 as the Networks service line was completing claims related to Hurricane Ian in the 2023 period.

Operating earnings were $1.1 million in the 2024 first quarter, decreasing from the $10.0 million in the 2023 period. The segment’s operating margin for the 2024 quarter was 3.5% as compared with 15.9% in the 2023 quarter.

Unallocated Corporate and Shared Costs and Credits, Net

Unallocated corporate costs were $8.0 million in the first quarter of 2024, compared with $4.1 million in the same period of 2023. The increase in the 2024 first quarter was primarily due to an increase in professional fees, compensation-related costs, and other reserves.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses (“SG&A”) increased $10.6 million, or 15.9%, in the three months ended March 31, 2024 as compared with the 2023 period. The increase was primarily due to professional fees, IT costs, bad debt expense, and compensation expense, including taxes and benefits.

Other Matters

The Company recognized pretax contingent earnout expenses totaling $0.2 million during each of the 2024 and 2023 quarters, 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 $2.5 million in the 2024 first quarter compared with $2.2 million in the comparable 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 March 31, 2024, totaled $45.2 million, compared with $58.4 million at December 31, 2023. The Company’s total debt outstanding as of March 31, 2024, totaled $230.2 million, compared with $209.1 million at December 31, 2023.

The Company’s operations used $19.8 million of cash, net during the first three months of 2024, compared with $0.4 million used in 2023. The increase in cash used was due primarily to $11.0 million lower operating earnings and $11.2 million higher incentive compensation payments over the prior year.

The Company made no contributions to its U.S. defined benefit pension plan and $0.6 million in contributions to its U.K. plans for the first quarter of 2024, compared with no contributions to the U.S. plan and $0.5 million to the U.K. plans in 2023.

During the 2024 first quarter, the Company didn't repurchase any shares of CRD-A, but repurchased 85,632 shares of CRD-B at an average per share cost of $8.56. There were no shares repurchased during the 2023 first quarter. The total cost of share repurchases in the 2024 quarter was $0.7 million.

Conference Call

As previously announced, Crawford & Company will host a conference call on May 2, 2024, at 8:30 a.m. Eastern Time to discuss its first quarter 2024 results. The conference call can be accessed live by dialing 1-888-259-6580 and using Conference ID 67309448. 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 June 2, 2024. You may dial 1-877-674-7070 and use passcode 309448# 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

 

(in thousands)

 

March 31,
2024

 

 

March 31,
2023

 

Geographic Area

Currency

USD equivalent

 

% of total

 

 

USD equivalent

 

% of total

 

U.S.

USD

$

179,721

 

 

59.6

%

 

$

199,857

 

 

63.2

%

U.K.

GBP

 

40,255

 

 

13.4

%

 

 

33,124

 

 

10.5

%

Canada

CAD

 

23,841

 

 

7.9

%

 

 

24,614

 

 

7.8

%

Australia

AUD

 

19,661

 

 

6.5

%

 

 

22,994

 

 

7.2

%

Europe

EUR

 

14,885

 

 

4.9

%

 

 

14,038

 

 

4.4

%

Rest of World

Various

 

23,291

 

 

7.7

%

 

 

21,707

 

 

6.9

%

Total Revenues, before reimbursements

$

301,654

 

 

100.0

%

 

$

316,334

 

 

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

 

(in thousands)

March 31, 2024

 

March 31, 2023

 

Operating earnings:

 

 

 

 

North America Loss Adjusting

$

4,479

 

$

8,065

 

International Operations

 

1,690

 

 

3,035

 

Broadspire

 

12,804

 

 

7,927

 

Platform Solutions

 

1,115

 

 

9,966

 

Unallocated corporate and shared costs, net

 

(8,007

)

 

(4,119

)

Consolidated operating earnings

 

12,081

 

 

24,874

 

(Deduct) add:

 

 

 

 

Net corporate interest expense

 

(3,596

)

 

(4,399

)

Stock option expense

 

(167

)

 

(156

)

Amortization of intangible assets

 

(1,868

)

 

(1,899

)

Non-service pension costs

 

(2,473

)

 

(2,171

)

Contingent earnout adjustments

 

(151

)

 

(248

)

Income tax provision

 

(1,047

)

 

(5,271

)

Net loss (income) attributable to noncontrolling interests

 

58

 

 

(49

)

Net income attributable to shareholders of Crawford & Company

$

2,837

 

$

10,681

 

 

 

 

 

 

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

 

(in thousands)

March 31,
2024

 

March 31,
2023

 

Net income attributable to shareholders of Crawford & Company

$

2,837

 

$

10,681

 

Add:

 

 

 

 

Depreciation and amortization

 

9,299

 

 

9,050

 

Stock-based compensation

 

1,218

 

 

1,023

 

Net corporate interest expense

 

3,596

 

 

4,399

 

Non-service pension costs

 

2,473

 

 

2,171

 

Contingent earnout adjustments

 

151

 

 

248

 

Income tax provision

 

1,047

 

 

5,271

 

Non-GAAP adjusted EBITDA

$

20,621

 

$

32,843

 

 

 

 

 

 

Following is a reconciliation of operating cash flow to free cash flow for the three months ended March 31, 2024 and 2023:

Three Months Ended

 

(in thousands)

March 31, 2024

 

 

March 31, 2023

 

 

Change

 

Net Cash Used in Operating Activities

$

(19,803

)

 

$

(445

)

 

$

(19,358

)

Less:

 

 

 

 

 

 

 

 

Property & Equipment Purchases, net

 

(1,541

)

 

 

(1,031

)

 

 

(510

)

Capitalized Software (internal and external costs)

 

(8,009

)

 

 

(7,610

)

 

 

(399

)

Free Cash Flow

$

(29,353

)

 

$

(9,086

)

 

$

(20,267

)

 

 

 

 

 

 

 

 

 

Non-GAAP consolidated results for 2024 exclude the non-cash, after-tax adjustments for amortization of intangible assets of $1.6 million, non-service-related pension costs of $1.9 million, and contingent earnout adjustment of $0.2 million. Non-GAAP consolidated results for 2023 exclude a similar adjustment for amortization of intangible assets of $1.4 million, non-service-related pension costs of $1.6 million, and contingent earnout adjustment of $0.2 million.

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 March 31, 2024

 

(in thousands)

Pretax earnings

 

Net income
attributable to Crawford & Company

 

Diluted earnings per
CRD-A
share

 

Diluted earnings per
CRD-B
share

 

GAAP

$

3,826

 

$

2,837

 

$

0.06

 

$

0.06

 

Adjustments:

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

1,868

 

 

1,575

 

 

0.03

 

 

0.03

 

Non-service related pension costs

 

2,473

 

 

1,929

 

 

0.04

 

 

0.04

 

Contingent earnout adjustments

 

151

 

 

151

 

 

 

 

 

Non-GAAP Adjusted

$

8,318

 

$

6,492

 

$

0.13

 

$

0.13

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

 

(in thousands)

Pretax earnings

 

Net income
attributable to Crawford & Company

 

Diluted earnings per
CRD-A
share

 

Diluted earnings per
CRD-B
share

 

GAAP

$

16,001

 

$

10,681

 

$

0.22

 

$

0.22

 

Adjustments:

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

1,899

 

 

1,424

 

 

0.03

 

 

0.03

 

Non-service related pension costs

 

2,171

 

 

1,613

 

 

0.03

 

 

0.03

 

Contingent earnout adjustments

 

248

 

 

184

 

 

-

 

 

-

 

Non-GAAP Adjusted

$

20,319

 

$

13,902

 

$

0.28

 

$

0.28

 

 

 

 

 

 

 

 

 

 

Following is information regarding the weighted average shares used in the computation of basic and diluted earnings per share:

 

Three Months Ended

 

(in thousands)

March 31, 2024

 

March 31, 2023

 

Weighted-Average Shares Used to Compute Basic Earnings Per Share:

 

 

 

 

Class A Common Stock

 

29,586

 

 

28,841

 

Class B Common Stock

 

19,542

 

 

19,848

 

Weighted-Average Shares Used to Compute Diluted Earnings Per Share:

 

 

 

 

Class A Common Stock

 

30,279

 

 

29,141

 

Class B Common Stock

 

19,542

 

 

19,848

 

 

 

 

 

 

Further information regarding the Company’s operating results for the three months ended March 31, 2024, financial position as of March 31, 2024, and cash flows for the three months ended March 31, 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 March 31,

 

2024

 

 

2023

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues Before Reimbursements

 

$

301,654

 

 

$

316,334

 

 

 

(5

)%

Reimbursements

 

 

11,419

 

 

 

11,604

 

 

 

(2

)%

Total Revenues

 

 

313,073

 

 

 

327,938

 

 

 

(5

)%

 

 

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Costs of Services Provided, Before Reimbursements

 

 

214,389

 

 

 

227,078

 

 

 

(6

)%

Reimbursements

 

 

11,419

 

 

 

11,604

 

 

 

(2

)%

Total Costs of Services

 

 

225,808

 

 

 

238,682

 

 

 

(5

)%

 

 

 

 

 

 

 

 

 

 

Selling, General, and Administrative Expenses

 

 

77,320

 

 

 

66,711

 

 

 

16

%

Corporate Interest Expense, Net

 

 

3,596

 

 

 

4,399

 

 

 

(18

)%

Total Costs and Expenses

 

 

306,724

 

 

 

309,792

 

 

 

(1

)%

 

 

 

 

 

 

 

 

 

 

Other Loss, Net

 

 

(2,523

)

 

 

(2,145

)

 

 

18

%

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

 

3,826

 

 

 

16,001

 

 

 

(76

)%

Provision for Income Taxes

 

 

1,047

 

 

 

5,271

 

 

 

(80

)%

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

2,779

 

 

 

10,730

 

 

 

(74

)%

 

 

 

 

 

 

 

 

 

 

Net Loss (Income) Attributable to Noncontrolling Interests

 

 

58

 

 

 

(49

)

 

nm

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to Shareholders of Crawford & Company

 

$

2,837

 

 

$

10,681

 

 

 

(73

)%

 

 

 

 

 

 

 

 

 

 

Earnings Per Share - Basic:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.06

 

 

$

0.22

 

 

 

(73

)%

Class B Common Stock

 

$

0.06

 

 

$

0.22

 

 

 

(73

)%

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share - Diluted:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

$

0.06

 

 

$

0.22

 

 

 

(73

)%

Class B Common Stock

 

$

0.06

 

 

$

0.22

 

 

 

(73

)%

 

 

 

 

 

 

 

 

 

 

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 BALANCE SHEETS

As of March 31, 2024 and December 31, 2023

Unaudited

(In Thousands, Except Par Values)

 

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

45,196

 

 

$

58,363

 

Accounts Receivable, Net

 

 

125,985

 

 

 

131,362

 

Unbilled Revenues, at Estimated Billable Amounts

 

 

127,597

 

 

 

116,611

 

Income Taxes Receivable

 

 

2,586

 

 

 

4,842

 

Prepaid Expenses and Other Current Assets

 

 

44,460

 

 

 

58,168

 

Total Current Assets

 

 

345,824

 

 

 

369,346

 

 

 

 

 

 

 

 

Net Property and Equipment

 

 

21,597

 

 

 

22,742

 

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

 

Operating Lease Right-of-Use Asset, Net

 

 

86,141

 

 

 

88,615

 

Goodwill

 

 

76,621

 

 

 

76,724

 

Intangible Assets Arising from Business Acquisitions, Net

 

 

80,341

 

 

 

81,786

 

Capitalized Software Costs, Net

 

 

99,942

 

 

 

96,770

 

Deferred Income Tax Assets

 

 

26,162

 

 

 

26,247

 

Other Noncurrent Assets

 

 

39,649

 

 

 

36,969

 

Total Other Assets

 

 

408,856

 

 

 

407,111

 

 

 

 

 

 

 

 

Total Assets

 

$

776,277

 

 

$

799,199

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ INVESTMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Short-Term Borrowings

 

$

19,354

 

 

$

14,813

 

Accounts Payable

 

 

45,232

 

 

 

45,107

 

Accrued Compensation and Related Costs

 

 

64,256

 

 

 

97,842

 

Self-Insured Risks

 

 

20,188

 

 

 

33,238

 

Income Taxes Payable

 

 

5,334

 

 

 

6,130

 

Operating Lease Liability

 

 

24,438

 

 

 

24,351

 

Other Accrued Liabilities

 

 

48,108

 

 

 

42,271

 

Deferred Revenues

 

 

37,224

 

 

 

35,540

 

Total Current Liabilities

 

 

264,134

 

 

 

299,292

 

 

 

 

 

 

 

 

Noncurrent Liabilities:

 

 

 

 

 

 

Long-Term Debt and Finance Leases, Less Current Installments

 

 

210,823

 

 

 

194,335

 

Operating Lease Liability

 

 

74,295

 

 

 

78,029

 

Deferred Revenues

 

 

23,807

 

 

 

24,871

 

Accrued Pension Liabilities

 

 

23,440

 

 

 

24,006

 

Other Noncurrent Liabilities

 

 

36,540

 

 

 

38,835

 

Total Noncurrent Liabilities

 

 

368,905

 

 

 

360,076

 

 

 

 

 

 

 

 

Shareholders’ Investment:

 

 

 

 

 

 

Class A Common Stock, $1.00 Par Value

 

 

29,628

 

 

 

29,525

 

Class B Common Stock, $1.00 Par Value

 

 

19,469

 

 

 

19,555

 

Additional Paid-in Capital

 

 

83,104

 

 

 

82,589

 

Retained Earnings

 

 

227,311

 

 

 

228,564

 

Accumulated Other Comprehensive Loss

 

 

(214,792

)

 

 

(218,615

)

Shareholders’ Investment Attributable to Shareholders of Crawford & Company

 

 

144,720

 

 

 

141,618

 

Noncontrolling Interests

 

 

(1,482

)

 

 

(1,787

)

Total Shareholders’ Investment

 

 

143,238

 

 

 

139,831

 

 

 

 

 

 

 

 

Total Liabilities and Shareholders’ Investment

 

$

776,277

 

 

$

799,199

 

CRAWFORD & COMPANY

SUMMARY RESULTS BY OPERATING SEGMENT WITH DIRECT COMPENSATION AND OTHER EXPENSES

Unaudited

(In Thousands, Except Percentages)

Three Months Ended March 31,

 

 

 

 

 

 

North America Loss Adjusting

 

%

 

International Operations

 

%

 

Broadspire

 

%

 

Platform Solutions

 

%

 

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues Before Reimbursements

 

$

77,365

 

$

77,597

 

(0.3)%

 

$

98,092

 

$

91,863

 

6.8%

 

$

94,298

 

$

84,054

 

12.2%

 

$

31,899

 

$

62,820

 

(49.2)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Compensation, Fringe Benefits & Non-Employee Labor

 

 

55,467

 

 

54,164

 

2.4%

 

 

64,979

 

 

61,421

 

5.8%

 

 

57,257

 

 

52,641

 

8.8%

 

 

18,930

 

 

40,911

 

(53.7)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

 

71.7

%

 

69.8

%

 

 

 

66.2

%

 

66.9

%

 

 

 

60.7

%

 

62.6

%

 

 

 

59.3

%

 

65.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor

 

 

17,419

 

 

15,368

 

13.3%

 

 

31,423

 

 

27,407

 

14.7%

 

 

24,237

 

 

23,486

 

3.2%

 

 

11,854

 

 

11,943

 

(0.7)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

 

22.5

%

 

19.8

%

 

 

 

32.0

%

 

29.8

%

 

 

 

25.7

%

 

27.9

%

 

 

 

37.2

%

 

19.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

72,886

 

 

69,532

 

4.8%

 

 

96,402

 

 

88,828

 

8.5%

 

 

81,494

 

 

76,127

 

7.1%

 

 

30,784

 

 

52,854

 

(41.8)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings (1)

 

$

4,479

 

$

8,065

 

(44.5)%

 

$

1,690

 

$

3,035

 

(44.3)%

 

$

12,804

 

$

7,927

 

61.5%

 

$

1,115

 

$

9,966

 

(88.8)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Revenues Before Reimbursements

 

 

5.8

%

 

10.4

%

 

 

 

1.7

%

 

3.3

%

 

 

 

13.6

%

 

9.4

%

 

 

 

3.5

%

 

15.9

%

 

(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 March 31, 2024 and March 31, 2023

Unaudited

(In Thousands)

 

 

 

2024

 

 

2023

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net Income

 

$

2,779

 

 

$

10,730

 

Reconciliation of net income to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

9,299

 

 

 

9,050

 

Stock-based compensation

 

 

1,218

 

 

 

1,023

 

(Gain) loss on disposal of property and equipment

 

 

(81

)

 

 

20

 

Contingent earnout adjustments

 

 

151

 

 

 

248

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

6,312

 

 

 

(17

)

Unbilled revenues, net

 

 

(9,511

)

 

 

(6,333

)

Accrued or prepaid income taxes

 

 

942

 

 

 

3,895

 

Accounts payable and accrued liabilities

 

 

(25,837

)

 

 

(15,818

)

Deferred revenues

 

 

116

 

 

 

2,841

 

Accrued retirement costs

 

 

(3,546

)

 

 

(2,887

)

Prepaid expenses and other operating activities

 

 

(1,645

)

 

 

(3,197

)

Net cash used in operating activities

 

 

(19,803

)

 

 

(445

)

 

 

 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

Acquisitions of property and equipment

 

 

(1,541

)

 

 

(1,031

)

Capitalization of computer software costs

 

 

(8,009

)

 

 

(7,610

)

Net cash used in investing activities

 

 

(9,550

)

 

 

(8,641

)

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

Cash dividends paid

 

 

(3,443

)

 

 

(2,925

)

Repurchases of common stock

 

 

(733

)

 

 

Increases in short-term and revolving credit facility borrowings

 

 

35,807

 

 

 

19,394

 

Payments on short-term and revolving credit facility borrowings

 

 

(14,794

)

 

 

(10,265

)

Payments of contingent consideration on acquisitions

 

 

(579

)

 

 

(848

)

Other financing activities

 

 

(185

)

 

 

(169

)

Net cash provided by financing activities

 

 

16,073

 

 

 

5,187

 

 

 

 

 

 

 

 

Effects of exchange rate changes on cash and cash equivalents

 

 

394

 

 

 

1,195

 

Decrease in cash, cash equivalents, and restricted cash(1)

 

 

(12,886

)

 

 

(2,704

)

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)

 

$

46,659

 

 

$

43,941

 

(1) The 2024 amounts include beginning restricted cash of $1,182 at December 31, 2023, and ending restricted cash of $1,463 at March 31, 2024, and the 2023 amounts include beginning restricted cash of $638 at December 31, 2022, and ending restricted cash of $637 at March 31, 2023, which we present as part of "Prepaid expenses and other current assets" on the Balance Sheets.

 

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

Source: Crawford & Company

FAQ

What were Crawford & Company's Q1 2024 revenues?

Crawford & Company reported revenues before reimbursements of $301.7 million in Q1 2024, down 5% from the previous year.

Who is the CEO of Crawford & Company?

Rohit Verma serves as the president and chief executive officer of Crawford & Company.

Where is Crawford & Company based?

Crawford & Company is based in Atlanta.

What is the stock symbol of Crawford & Company?

The stock symbol of Crawford & Company is CRD-A and CRD-B.

How can I access Crawford & Company's financial reports?

Financial reports and more information can be found on Crawford & Company's website at www.crawco.com.

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