Crawford & Company · NYSE:CRD.A
Crawford & — Fox-Pitt Kelton Cochran Caronia Waller Bank and Insurance Conference 2009
34 slides from Crawford &'s conference presentation, Jun 18, 2009
Slide 1: Fox-Pitt Kelton Cochran Caronia Waller Bank and Insurance Conference
Exhibit 99.1 Fox-Pitt Kelton Cochran Caronia Waller Bank and Insurance Conference June 18, 2009 WORKINGTOGETHER: theCrawfordDifference
Slide 2: Forward-looking Statements, Segment Operating Earnings and Non-GAAP Financial Information
Forward-looking Statements, Segment Operating Earnings and Non-GAAP Financial Information Forward Looking Statements: This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Crawford & Company. St
Slide 3: Our Market Leading Global Businesses
Our Market Leading Global Businesses • World’s largest fully-integrated independent provider of global claims management solutions. • Four reporting segments: – International Operations • Serves the global insurance industry and multi-national corporations – U.S. Property & Casualty • Serves the U.S
Slide 4: Positioned for a Global Economy
Positioned for a Global Economy More than 700 locations in 63 countries 4 WORKING TOGETHER: theCrawfordDifference
Slide 5: Diversified Business and Clients
Diversified Business and Clients Fiscal 2008 Revenues of $1.05 Billion • No single client over 6% of total revenue • Top 20 Clients represent 34.7% of total revenue • Top 50 Clients represent 48.5% of total revenue Broadspire • Workers’ Compensation and International Liability Claims Administration
Slide 6: Goals: 2009 - 2011
Goals: 2009 - 2011 •Leverage and grow Crawford & Company’s position as the world’s largest independent provider of claims solutions. –Expand Key Account Management to improve sales and marketing initiatives to win more business. •Further improve working capital management. – Accounts receivable, DSO
Slide 7: The Crawford System of Claims Solutions
SM The Crawford System of Claims Solutions The System is the most comprehensive global, integrated solution for all corporate, insurer, and re-insurer claims administration. 7 WORKINGTOGETHER: theCrawfordDifference
Slide 8: Financial Review
Financial Review WORKINGTOGETHER: theCrawfordDifference
Slide 9: Four-year Crawford Financial Performance
Four-year Crawford Financial Performance $ in millions • Improving performance in a difficult $1,200 operating environment $1,100 Revenue CAGR of 10.6% from 2005 to 2008 $1,000 Operating earnings CAGR of 41.0% from 2005 1,049 to 2008 $900 975 $800 820 • Strong revenue growth internationally $700 772
Slide 10: Fiscal 2008 Financials
Fiscal 2008 Financials CONDENSED CONSOLIDATED STATEMENTS OF INCOME* Unaudited (In Thousands, Except Earnings Per Share and Percentages) Year Ended December 31 2008 2007 % Change Revenues: Revenues Before Reimbursements $1,048,582 $975,143 8% Reimbursements 87,334 76,135 15% Total Revenues 1,135,916
Slide 11: Fiscal 2008 Financials
Fiscal 2008 Financials Crawford & Company Balance Sheet Highlights* As of December 31, 2008 and December 31, 2007 in thousands, except percentages December 31, December 31, 2008 2007 Change Cash and cash equivalents $73,124 $50,855 $22,269 Accounts receivable, net 157,430 178,528 (21,098) Work in pr
Slide 12: Fiscal 2008 Financials: Free Cash Flow
Fiscal 2008 Financials Crawford & Company Free Cash Flow (non-GAAP) For the years ended December 31, 2008 and 2007 In Thousands 2008 2007 Variance Net Income $32,259 $16,116 $16,143 Plus: Depreciation / Non-Cash Items 38,923 31,692 7,231 Less: Special Credits (2,512) (8,824) 6,312 Less: Working Capi
Slide 13: First Quarter 2009 Financials
First Quarter 2009 Financials CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (In Thousands, Except Earnings Per Share Amounts and Percentages) Quarter Ended March 31 2009 2008 % Change Revenues: Revenues Before Reimbursements $236,083 $255,512 -8% Reimbursements 14,200 19,1
Slide 14: Revenue and Earnings Per Share Bridge 1st Quarter 2008 to 09
Revenue and Earnings Per Share Bridge 1st Quarter 2008 to 2009 Net Income attributable Revenues before to Crawford Diluted In millions, except per share amounts Reimbursements & Company EPS st 1 quarter 2008 results $255.5 $9.1 $0.18 (Less)/Add: Foreign currency impact in 2009 (23.4) (1.4) (0.03) In
Slide 15: Operating Segments
Operating Segments WORKINGTOGETHER: theCrawfordDifference
Slide 16: First Quarter 2009 Financials: International Operations
First Quarter 2009 Financials $ in millions Summary Results, International Operations 110 For the quarters ended March 31, 2009 and 2008 100 in thousands except percentages 90 $106.7 Unaudited 2009 2008 % Change 80 $90.9 70 Revenues $ 90,872 $ 106,710 -14.8% 60 Total Operating Expenses 83,407 97,723
Slide 17: International (excluding U.S.) Property & Casualty Insurance Market
International (excluding U.S.) Property & Casualty Insurance Market • Only 4.4% of dollars spent by rest of world (ROW) carriers on claims are outsourced to third party independent adjusters. • Very few global claims providers – Crawford is the largest • As ROW insurance carriers look to consolidate
Slide 18: First Quarter 2009 Financials: U.S. Property & Casualty
First Quarter 2009 Financials $ in millions Summary Results, U.S. Property & Casualty 60 For the quarters ended March 31, 2009 and 2008 50 in thousands except percentages 40 $55.1 Unaudited $49.5 30 2009 2008 % Change 20 Revenues $ 55,052 $ 49,510 11.2% 10 0 Total Operating Expenses 48,882 43,561 12
Slide 19: U.S. Insurance Market
U.S. Insurance Market • Approximately 14% of dollars spent by U.S. carriers on claims services are outsourced to third parties – High propensity to outsource non-core lines and/or non-core states • Outsourced claims service provider market is highly fragmented – Crawford is the market leader with ap
Slide 20: U.S. and International Property & Casualty Growth Opportunities
U.S. and International Property & Casualty Growth Opportunities • Strategic Growth – Target large insurers who are consolidating their vendor lists and strive to ensure Crawford is named an approved vendor • Continuous quality improvement • Efforts toward training and product development – Target ma
Slide 21: First Quarter 2009 Financials: Broadspire
First Quarter 2009 Financials $ in millions Summary Results, Broadspire 90 For the quarters ended March 31, 2009 and 2008 80 in thousands except percentages 70 Unaudited $80.3 $74.6 2009 2008 % Change 60 50 Revenues $ 74,601 $ 80,313 -7.1% 40 1Q 2009 1Q 2008 Total Operating Expenses 76,555 78,566 -2
Slide 22: U.S. TPA Market Opportunities
U.S. TPA Market Opportunities • Self-insured entities and captives outsource practically all of their claims services • Outsourced total claims management is fragmented • Local and regional providers unable to leverage technology investment Unallocated Loss Adjusting Expenses Outsourced Loss Adjusti
Slide 23: Broadspire Positioning
Broadspire Positioning Third Largest TPA in Workers’ Compensation/Liability Market Products and Services: Workers’ Compensation Claims Services Auto and General Liability Claims Services Medical and Disability Management Services Long-Term Care Services Risk Management Information Systems (Risk Scie
Slide 24: First Quarter 2009 Financials: Legal Settlement Administration
First Quarter 2009 Financials $ in millions Summary Results, Legal Settlement Administration 20.0 For the quarters ended March 31, 2009 and 2008 18.0 in thousands except percentages $19.0 16.0 Unaudited 14.0 2009 2008 % Change $15.6 12.0 Revenues $ 15,558 $ 18,979 -18.0% 10.0 1Q 2009 1Q 2008 Total O
Slide 25: Products and Services
Products and Services • The Garden City Group, Inc. (GCG) provides these core services: – GCG Class Action Services provides technology-intensive administrative services for plaintiff and defense counsel and corporate defendants to expedite high-volume class action settlements. – GCG Bankruptcy Serv
Slide 26: Securities Class Action Cases
Securities Class Action Cases 35 30 33 25 26 20 15 10 11 5 4 4 4 0 AB Data, Berdon Complete Heffler Gilardi and Garden Ltd. LLP Claims Radetich & Co., LLC City Group Solutions, LLC Saitra LLP Source: RiskMetrics Group (SCAS Top 100 since 1995, September 30, 2008) GCG has handled one-third of the lar
Slide 27: Summary
Summary WORKING TOGETHER: theCrawfordDifference
Slide 28: Crawford is "Positioned for Growth"
Crawford is “Positioned for Growth” • Access to growing global markets • Increasing market share both domestic and internationally • Crawford expects to benefit from global consolidation of TPA vendors • Diverse customer base • High customer retention rates • Emphasis on quality and value provided s
Slide 29: Execution Strategy
Execution Strategy • Relentless dedication to outstanding execution • Each strategic action and intention translated into monthly, measurable, objectives and outcomes • Systematic tracking of interim milestones better enables leadership control and proactive decision making • Reinforce accountabilit
Slide 30: 2009 Guidance
2009 Guidance • Reaffirming Full Year 2009 Guidance: – Consolidated revenue before reimbursements between $960 million and $980 million – Consolidated operating earnings between $50.5 million and $55.8 million – After reflecting stock-based compensation expense, net corporate interest expense, custo
Slide 31: Crawford & Company will be known as a target driven corporation
WORKING TOGETHER: the Crawford Difference “Crawford & Company will be known as a target driven corporation that meets its promises to clients and shareholders.” Jeffrey T. Bowman President and CEO 31 WORKING TOGETHER: theCrawfordDifference
Slide 32: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Reimbursements for Out-of-Pocket Expenses In the normal course of our business, we sometimes pay for certain out-of-pocket expenses that are reimbursed by our clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are reported as reve
Slide 33: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information (in $000's) December 31, December 31, 2008 2007 Deferred Revenues, Net Deferred revenues, current $ 59,679 $ 64,363 Deferrend revenues, noncurrent 42,795 58,925 Total deferred revenues 102,474 123,288 Less: Receivable held in trust included in accounts receiv
Slide 34: Fox-Pitt Kelton Cochran Caronia Waller Bank and Insurance Conference
Fox-Pitt Kelton Cochran Caronia Waller Bank and Insurance Conference June 18, 2009 WORKINGTOGETHER: theCrawfordDifference
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