Crawford & Company · NYSE:CRD.A
Crawford & — Q2 2015 Earnings Presentation
20 slides from Crawford &'s earnings presentation, Aug 3, 2015
Slide 1: Second Quarter 2015 Earnings Conference Call
Second Quarter 2015 Earnings Conference Call August 3, 2015 Crawford & Company
Slide 2: Forward-Looking Statements
PAGE 2 • 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 and quantitative, that are not statements of
Slide 3: Global Business Services Leader
PAGE 3 • The world's largest independent provider of global claims management solutions • Multiple globally recognized brand names: Crawford, Broadspire, GCG • Clients include multinational insurance carriers, brokers and local insurance firms as well as 200 of the Fortune 500 GLOBAL BUSINESS SERVIC
Slide 4: Today's Agenda
TODAY'S AGENDA --- Welcome and Opening Comments --- Second Quarter 2015 Financial Review --- Updated Guidance
Slide 5: Second Quarter 2015 Business Summary
PAGE 5 20.9 304 288 Revenues ($ in millions) Consolidated Operating Earnings ($ in millions) • Revenues of $304.4 million • Consolidated operating earnings of $17.7 million • Diluted earnings per share of $0.08 for CRDA and $0.06 for CRDB • Diluted earnings per share on a non-GAAP basis (1) of $0.14
Slide 6: Second Quarter 2015 Financial Review
SECOND QUARTER 2015 Financial Review
Slide 7: Consolidated income statement, three months ended June 30, 2015
PAGE 7 Unaudited ($ in thousands, except per share amounts) Three Months Ended June 30, 2015 2014 % Change Revenues Before Reimbursements $304,398 $288,216 6 % Costs of Services Before Reimbursements 232,108 208,249 11 % Selling, General, and Administrative Expenses 57,221 60,902 (6 )% Corporate Int
Slide 8: Americas Segment Highlights
PAGE 8 U.S. Canada Latin America/ Caribbean Revenues by Geographic Region ($ in millions) Americas Cases Received (In thousands) U.S. Canada Latin America/ Caribbean Operating Results (2Q 2015 v. 2Q 2014) • Revenues of $99.2 million versus $93.6 million • Exchange rates reduced revenues by 4.9% • Op
Slide 9: Americas Segment Highlights (cont.)
PAGE 9 9.1 85.9 6.5 23.3 11.5 7.0 Revenues ($ in millions) Catastrophe Cases (In thousands) U.S. Catastrophe (CAT) Adjuster Activity • CAT revenues in the 2015 period included $13.6 million under an outsourcing arrangement with a major U.S. insurer where the Company supplies adjusters to the client'
Slide 10: EMEA/AP Segment Highlights
PAGE 10 U.K. Europe U.K. Asia-Pacific Asia-Pacific Europe Revenues by Geographic Region ($ in millions) EMEA/AP Cases Received (In thousands) Operating Results (2Q 2015 v. 2Q 2014) • Revenues of $97.2 million versus $87.2 million • Exchange rates reduced revenues by 13.4% • Operating earnings of $1.
Slide 11: Broadspire Segment Highlights
PAGE 11 Revenues by Service Line ($ in millions) Broadspire Cases Received (In thousands) Risk Mgmt Info. Svcs. Other Medical Mgmt. Casualty Workers' Comp. Workers' Comp. Operating Results (2Q 2015 v. 2Q 2014) • Revenues of $73.7 million versus $66.7 million • Operating earnings of $6.0 million vers
Slide 12: Legal Settlement Administration Segment Highlights
PAGE 12 Backlog ($ in millions) Operating Results (2Q 2015 v. 2Q 2014) • Revenues of $34.3 million versus $40.7 million • Operating earnings of $3.7 million versus $5.7 million • Operating earnings margins of 10.8% versus 14.0% • Backlog at $88 million versus $97 million Legal Settlement Administrat
Slide 13: Balance Sheet Highlights
PAGE 13 Unaudited ($ in thousands) June 30, 2015 December 31, 2014 Change Cash and cash equivalents $62,454 $52,456 $9,998 Accounts receivable, net 181,387 180,096 1,291 Unbilled revenues, net 117,169 103,163 14,006 Total receivables 298,556 283,259 15,297 Goodwill and intangible assets arising from
Slide 14: Operating and Free Cash Flow
PAGE 14 Unaudited ($ in thousands) 2015 2014 Variance Net Income Attributable to Shareholders of Crawford & Company $ 7,040 $ 17,116 $ (10,076 ) Depreciation and Other Non-Cash Operating Items 23,139 19,381 3,758 Unbilled and Billed Receivables Change 1,831 (39,930 ) 41,761 Working Capital Change (1
Slide 15: 2015 Guidance
PAGE 15 Crawford & Company is revising its guidance for 2015 as follows: YEAR ENDING DECEMBER 31, 2015 Low End High End Consolidated revenues before reimbursements $1.16 $1.18 billion Consolidated operating earnings $70.0 $80.0 million Consolidated cash provided by operating activities $30.0 $40.0 m
Slide 16: Appendix Second Quarter 2015
Appendix SECOND QUARTER 2015
Slide 17: Non-GAAP explanation
PAGE 17 Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled mea
Slide 18: Reconciliation of Non-GAAP Items
PAGE 18 Quarter Ended Quarter Ended Full Year June 30, June 30, Guidance Unaudited ($ in thousands) 2015 2014 2015 * Revenues Before Reimbursements Total Revenues $ 324,416 $ 307,053 $ 1,250,000 Reimbursements (20,018 ) (18,837 ) (80,000 ) Revenues Before Reimbursements $ 304,398 $ 288,216 $ 1,170,0
Slide 19: Reconciliation of Non-GAAP Items: Net Debt
PAGE 19 RECONCILIATION OF NON-GAAP ITEMS (cont.) Net Debt June 30, December 31, Unaudited ($ in thousands) 2015 2014 Net Debt Short-term borrowings $ 3,320 $ 2,002 Current installments of long-term debt and capital leases 1,885 763 Long-term debt and capital leases, less current installments 249,447
Slide 20: Non-GAAP Adjusted Net Income and Diluted EPS
PAGE 20 RECONCILIATION OF NON-GAAP ITEMS (cont.) Non-GAAP Adjusted Net Income and Diluted Earnings Per Share Three Months Ended June 30, 2015 Unaudited ($ in thousands) Income Before Taxes Tax Expense Net Income Net Income Attributable to Crawford & Company Diluted Earnings per Share (CRDA) Diluted