Crawford & Company · NYSE:CRD.A
Crawford & — Q2 2021 Earnings Presentation
30 slides from Crawford &'s earnings presentation, Aug 4, 2021
Slide 1: Second Quarter 2021 Earnings Conference Call
Crawford & Company Second Quarter 2021 Earnings Conference Call CRD-A & CRD-B (NYSE)
Slide 2: Forward-Looking Statements and Additional Information
2 Forward-Looking Statements and Additional Information Forward-Looking Statements This presentation contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative
Slide 3: Key Highlights
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 3 Key Highlights Second Quarter 2021 Q2 NON-GAAP GROWTH METRICS¹ Delivered solid financial performance, supported by hard work and c
Slide 4: Evolving Crawford's Strategy for Long-Term Growth
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 4 Evolving Crawford’s Strategy for Long-Term Growth Our enhanced operating structure creates a better focus for management to levera
Slide 5: Advancing Crawford's Strategy
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 5 Advancing Crawford’s Strategy We are building upon our already solid foundation as we aim to further position the business for fut
Slide 6: Environmental, Social and Governance
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 6 Environmental, Social and Governance Crawford is committed to addressing those ESG factors most material to our operations Corpora
Slide 7: Our Capital Allocation Strategy
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 7 Our Capital Allocation Strategy We’re committed to employing a consistent strategy and are staying disciplined on our valuation ap
Slide 8: Operational Overview
Operational Overview Crawford
Slide 9: External Factors
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 9 External Factors ESTIMATED ECONOMIC AND INSURED LOSSES – CATASTROPHIC EVENTS IN THE US ($B)1 Economic Losses Insured Losses 30 23.
Slide 10: Impact Across Our Global Service Lines (GSLs)
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 10 10 Impact Across Our Global Service Lines (GSLs) Second Quarter Performance • 15% revenue growth in US Revenue Loss • Recovering
Slide 11: Customer Excellence
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 11 11 Customer Excellence Maintained and exceeded pre-pandemic client service delivery levels Improved overall score to 46, increasi
Slide 12: Financial Overview
Financial Overview Crawford
Slide 13: Second Quarter 2021 Financial Summary
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 13 13 Second Quarter 2021 Financial Summary Quarter Ended June 30, June 30, ($ in millions, except per share amounts) 2021 2020 % Ch
Slide 14: Crawford Loss Adjusting
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 14 Crawford Loss Adjusting Three months ended (in thousands, except percentages) June 30, 2021 June 30, 2020 Variance Revenues $115,
Slide 15: Crawford Platform Solutions
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 15 Crawford Platform Solutions Three months ended (in thousands, except percentages) June 30, 2021 June 30, 2020 Variance Highlights
Slide 16: Crawford TPA Solutions
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 16 Crawford TPA Solutions Three months ended (in thousands, except percentages) June 30, 2021 June 30, 2020 Variance Highlights Reve
Slide 17: Additional Financial Matters
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 17 Additional Financial Matters • Unallocated corporate costs of $1.7 million compared to $2.1 million in the Unallocated Corporate
Slide 18: Balance Sheet Highlights
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 18 Balance Sheet Highlights June 30, December 31, Unaudited ($ in thousands) 2021 2020 Change Cash and cash equivalents $ 44,708 $ 4
Slide 19: Net Debt and Pension Liability
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 19 19 Net Debt and Pension Liability Net Debt Pension Liability 200,000 140,000 $171.2 million 180,000 120,000 160,000 $121.7 millio
Slide 20: Operating And Free Cash Flow
Key Highlights | Strategy Overview| ESG Priorities| Capital Allocation | External Factors | Segment Highlights | New Business Momentum | Financial Results | Conclusion 20 Operating And Free Cash Flow For the year to date periods ended June 30, Unaudited ($ in thousands) 2021 2020 Change Net Income (
Slide 21: Crawford & Company
21 21 Crawford & Company The world’s largest publicly listed independent provider of global claims management and outsourcing solutions. 9,000 employees 50K+ field resources 70 countries $18B+ Claims Managed Annually
Slide 22: Appendix: Non-GAAP Financial Information
22 Appendix: Non-GAAP Financial Information
Slide 23: Appendix: Non-GAAP Financial Information
23 Appendix: Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comp
Slide 24: Appendix: Non-GAAP Financial Information (cont.)
24 Appendix: Non-GAAP Financial Information (cont.) Segment and Consolidated Gross Profit Gross profit is defined as revenues less direct expenses which exclude indirect overhead expenses allocated to the business. Indirect expenses consist of centralized administrative support costs, regional and l
Slide 25: Total Revenues Before Reimbursements by Major Currency
25 Total Revenues Before Reimbursements by Major Currency The following table illustrates revenue as a percentage of total revenue in the major currencies of the geographic areas in which Crawford does business: Three Months Ended June 30, June 30, (in thousands) 2021 2020 Geographic Area Currency U
Slide 26: Reconciliation of Non-GAAP Items
26 Reconciliation of Non-GAAP Items Revenues, Costs of Services Provided, and Operating Earnings Quarter Ended Quarter Ended June 30, June 30, Unaudited ($ in thousands) 2021 2020 Revenues Before Reimbursements Total Revenues $ 276,545 $ 242,875 Reimbursements (9,088) (8,459) Revenues Before Reimbur
Slide 27: Reconciliation of Non-GAAP Items (cont.)
27 Reconciliation of Non-GAAP Items (cont.) Adjusted EBITDA ) Quarter Ended June 30, June 30, Unaudited ($ in thousands) 2021 2020 Net income attributable to shareholders of Crawford & Company $ 11,780 $ 5,898 Add: Depreciation and amortization 10,464 9,390 Stock-based compensation 1,954 1,118 Net c
Slide 28: Reconciliation of Non-GAAP Items (cont.)
28 Reconciliation of Non-GAAP Items (cont.) Net Debt June 30, December 31, Unaudited ($ in thousands) 2021 2020 Net Debt Short-term borrowings $ 7,000 $ 1,570 Current installments of finance leases and other obligations 84 267 Long-term debt and finance leases, less current installments 117,878 111,
Slide 29: Reconciliation of Non-GAAP Items (cont.)
29 Reconciliation of Non-GAAP Items (cont.) Segment Gross Profit Three months ended June 30, 2021 June 30, 2020 ($ in thousands) Segment gross profit: Crawford Loss Adjusting $ 27,244 $ 30,525 Crawford Platform Solutions 15,435 10,662 Crawford TPA Solutions 19,064 17,170 Segment gross profit 61,743
Slide 30: Reconciliation of Second Quarter Non-GAAP Results
30 Reconciliation of Second Quarter Non-GAAP Results Three Months Ended June 30, 2021 Net Income Non-GAAP Attributable to Diluted Diluted Operating Pretax Crawford & Earnings per Earnings per Unaudited ($ in thousands) Revenues Earnings Earnings Company CRD-A Share(1) CRD-B Share GAAP $ 267,457 $ 19