Crawford & Company · NYSE:CRD.A
Crawford & — Non-Deal Roadshow (July 2011)
32 slides from Crawford &'s roadshow presentation, Jul 11, 2011
Slide 1: SunTrust Robinson Humphrey Boston Marketing Trip
SunTrust Robinson Humphrey Boston Marketing Trip July 12, 2011
Slide 2: Crawford & Company 70th anniversary message
May 27, 2011 Since onr founding in 1941, Crawford & Company has grown from a small independent claims adjusting firm to a global provider of claims services, business process outsourcing and consulting to companies in more than 70 countries. As we mark onr platinum anniversary, Crawford would like t
Slide 3: Market-Leading Global Businesses
4 Market-Leading Global Businesses The world's largest fully-integrated independent provider of global claims management solutions. EMEA-A/P Americas Broadspire Legal Settlement Administration Serves the U.K., European, Middle Eastern, African and Asia Pacific markets Serves the U.S., Canadian and L
Slide 4: Our Global Strength
5 Our Global Strength $1 Billion Revenue Company 700 Locations 70+ Countries 8,700 Employees 8,700 Employees
Slide 5: Diversified Business and Clients
Diversified Business and Clients Legal Settlement Administration Broadspire EMEA/AP Americas Revenue 0.159 0.238 0.277 0.325 Fiscal 2010 Revenues of $1.030 Billion EMEA/AP Property and Casualty Services Global Technical Services Global Marine and Transportation Global Markets 27.7% 23.8% 15.9% Ameri
Slide 6: The Crawford System of Claims Solutions
The Crawford System of Claims SolutionsSM The Crawford System is the most comprehensive global, integrated solution for all corporate, insurer, and re-insurer claims administration. 7
Slide 7: Financial Review
Financial Review 8
Slide 8: Crawford Financial Performance
Crawford Financial Performance 2006 2007 2008 2009 2010 2011P* Consolidated Revenues 819.5 975.1 1049 970 1030 1055 $ in millions 2006 2007 2008 2009 2010 2011P* Net Income Attributable to Shareholders of Crawford and Company before Impairment Charge 15.011 16.116 32.259 25.2 38.2 36 $ in millions 1
Slide 9: First Quarter 2011 Business Summary
First Quarter 2011 Business Summary 2010 positive business trends continue into 2011Revenue and earnings reflected strong performance in Legal Settlement AdministrationContinued organic growth in EMEA/AP driven by weather-related claims in Australia and the U.K.Group claims increased 10.5% over the
Slide 10: First Quarter 2011 Financials
First Quarter 2011 Financials CRAWFORD & COMPANY Income Statement Highlights Unaudited (In Thousands, Except Earnings and Dividend Per Share Amounts and Percentages) Quarter Ended March 31 Revenues: Revenues Before Reimbursements Costs of Services Selling, General, and Administrative Expenses Corpor
Slide 11: First Quarter 2011 Business Drivers
First Quarter 2011 Business Drivers Consolidated case growth of 10.5% over 2010 first quarterU.S. weather events are driving increased claims activity in 2011Severe weather - February to April 2011Special project in Legal Settlement Administration is significant contributorEMEA/AP catastrophic event
Slide 12: First Quarter 2011 Financials: Balance Sheet
As of March 31, 2011 and December 31, 2010 (In Thousands} March 31, December 31, 2011 2010 Change Cash and cash equivalents $46,732 $93,540 ($46,808) Accounts receivable, net 167,832 142,521 25,311 Unbilled revenues, net 129,606 122,933 6,673 Total receivables 297,438 265,454 31,984 Goodwill 126,982
Slide 13: Operational Review
Operational Review 14
Slide 14: First Quarter 2011 Financials - Americas
1Q 2011 1Q 2010 Revenue 85.3 84.9 1Q 2011 1Q 2010 Operating Earnings 3.114 6.849 Revenues Pro Forma 2011* $ 83,054 2011** $ 85,317 2010 $ 84,869 Total Operating Expenses 79,954 82,203 78,020 Operating Earnings $ 3,100 $ 3,114 $ 6,849 Operating Margin 3.7% 3.6% 8.1% 100 80 2011/2010 60 For the quarte
Slide 15: Americas claims and revenues by region
Americas U.S. Prop & Cas Canada Lat.Am. & Car. 1Q 2011 108.72 30.288 14.567 1Q 2010 114.122 25.342 18.011 Americas Claims Referred (in 000s) U.S. Property and CasualtyClaims accelerated with recent weather eventsContinued expansion of Global Technical Services Growth in Contractor Connection with ne
Slide 16: Americas Competitive Advantages
17 Americas Competitive Advantages National presenceGreater scale, stewardship programs and resources to penetrate a larger national account market shareFully integrated services that deliver more effective program administration Crawford Central for centralized administration while leveraging the s
Slide 17: First Quarter 2011 Financials - EMEA/AP
1Q 2011 1Q 2010 Revenue 79.775 68.776 Revenue at 2008 FX rates 1.223 1Q 2011 1Q 2010 Operating Earnings 7.152 4.813 Operating Earnings at 2008 FX rates 1 Summary Results, EMEA/AP For the quarters ended March 31, 2011 and 2010 2011** $ 79,775 72,623 $ 7,152 9.0% $ 80,077 Revenues 13.5% 48.6% Total Op
Slide 18: EMEA/AP claims and revenues by region
EMEA/AP U.K. CEMEA Asia/Pacific 1Q 2011 55.883 41.495 40.183 1Q 2010 46.877 37.77 26.069 EMEA/AP Claims Referred (in 000s) Grow revenue and market shareNew client acquisition continuesExpansion of TPA offerings in CEMEARecruitment of GTS adjusters continuesU.K. Surge event in U.K. - small homeowner
Slide 19: EMEA/AP Competitive Advantages
20 EMEA/AP Competitive Advantages Global footprint Gateway for multinational corporations, global insurers and brokers to access global services, skills and technologyAcknowledged global market leader responding to increasing trends around catastrophic events, e.g. earthquakes, hurricanes, flooding,
Slide 20: First Quarter 2011 Financials - Broadspire
1Q 2011 1Q 2010 Revenue 59.796 61.963 1Q 2011 1Q 2010 Operating Loss -3.16 -2.333 Revenues 2011 $ 59,796 2010 $ 61,963 % Change - 3.5% Total Operating Expenses 62,956 64,296 -2.1% Operating Loss $ (3,160) $ (2,333) 35.4% Operating Margin -5.3% -3.8% $ in millions $ in millions $59.8 $62.0 ($3.2) $(2
Slide 21: Broadspire claims and revenues
Broadspire Claims referred (in 000s) Claims volume improved over Q1 2010Broadspire's fully-integrated offering continues to resonate in the marketRobust pipeline and new client wins are encouragingCost management initiatives continueStabilization of revenue during 2011 is a priorityPerformance expec
Slide 22: Broadspire Competitive Advantages
23 Broadspire Competitive Advantages Fully integrated service modelImproved outcomes by teaming claims and medical managementFlexibilityAbility to work closely with clients to design programs that meet specific needs and requirementsStaff knowledge and expertiseFlawless program transition, consisten
Slide 23: First Quarter 2011 Financials - Legal Settlement Administration
24 1Q 2011 1Q 2010 Revenue 60.15 20.658 1Q 2011 1Q 2010 Operating Earnings 16.998 3.238 Revenues 2011 $ 60,150 2010 $ 20,658 % Change 191.2% Total Operating Expenses 43,152 17,375 148.4% Operating Earnings $ 16,998 $ 3,283 417.8% Operating Margin 28.3% 15.9% $ in millions $ in millions $60.2 $20.7 $
Slide 24: Legal Settlement Administration backlog
Legal Settlement Administration 1Q 2011 1Q 2010 Backlog 110 50.7 Backlog ($ in millions) 110.0 50.7 Second best quarter in GCG historySpecial project expected to drive revenue and operating earnings through 2011Core business continues to perform wellBacklog at $110 million 25
Slide 25: Legal Settlement Administration Products and Services
Legal Settlement Administration 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 settlem
Slide 26: 2011 Operational Focus
2011 Operational Focus Key account management/cross-selling through the Crawford System of Claims SolutionsGrow Business Process OutsourcingFurther expansion of Global Technical Services (GTS) and Contractor ConnectionExpansion of TPA offerings growing internationallyImprove margins through cost con
Slide 27: 2011 Guidance
2011 Guidance Full Year 2011 guidance as of May 24, 2011:Consolidated revenues before reimbursements between $1.04 billion and $1.07 billionConsolidated operating earnings between $74.0 million and $82.0 millionConsolidated cash provided by operating activities between $30.0 million and $35.0 millio
Slide 28: Crawford is Positioned for Growth
Crawford is "Positioned for Growth" Access to growing global marketsIncreasing market share both domestic and internationallyCrawford expects to benefit from global consolidation of TPA vendorsDiverse customer baseHigh customer retention ratesEmphasis on quality and value provided sustains client co
Slide 29: Appendix: Non-GAAP Financial Information
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 compara
Slide 30: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items Deferred Revenues, Net Deferred revenues, current Deferred revenues, noncurrent $ March 31, 2011 50,640 29,323 $ December 31, 2010 48,198 30,048 Total deferred revenues 79,963 78,246 Less: Receivable held in trust included in accounts receivable Receivable held in tr
Slide 31: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) 32
Slide 32: SunTrust Robinson Humphrey Boston Marketing Trip
SunTrust Robison Humphrey Boston Marketing Trip July 12, 2011