Crawford & Company · NYSE:CRD.A
Crawford & — Q2 2008 Earnings Presentation
17 slides from Crawford &'s earnings presentation, Aug 4, 2008
Slide 1: Second Quarter 2008 Earnings Conference Call
Exhibit 99.2 Second Quarter 2008 Earnings Conference Call Monday, August 4, 2008 the STRENGTH of WORKING TOGETHER SM
Slide 2: Second Quarter Earnings Review
Second Quarter Earnings Review August 4, 2008 • Founded in 1941, Crawford is the largest independent global provider of claims management solutions and a fully integrated global provider of these solutions for the growing multi-national market. • Crawford is divided into four reporting segments that
Slide 3: Forward-looking Statements and Segment Operating Earnings
Forward-looking Statements and Segment Operating Earnings Forward Looking Statements: Some of the matters discussed and included in this presentation include forward-looking statements that involve risks and uncertainties. The Company’s actual results achieved in any future periods may differ materi
Slide 4: "The Strength of Working Together"
“The Strength of Working Together” “The Strength of Working Together” is unifying the Company around consistent goals: Adaptive leadership team responding to changing economic conditions Increasing emphasis on sources of additional revenue growth – Selling Crawford services into the existing client
Slide 5: Second Quarter 2008 Overview
Second Quarter 2008 Overview • Strong performance in a difficult operating $ in millions environment 270 Revenue growth of 9.4% supported by cost reduction 260 initiatives 250 240 $263.3 Net income up 167% over 2007 quarter, adjusting for 230 2007 gain on sale of office building 220 $240.5 • Strong
Slide 6: Second Quarter 2008 Highlights
Second Quarter 2008 Highlights Claims referred in 000s • International Operations 159 Strong global revenue growth of 27.9% 157 155 Operating margin increased to 9.2% in 2008 153 from 5.2% in 2007 151 155.4 149 Claims referred increased 2.7% 147 151.3 145 2Q 2008 2Q 2007 International Claims Claims
Slide 7: Second Quarter 2008 Highlights
Second Quarter 2008 Highlights Claims referred in 000s • Broadspire 71 Revenue decline of 4.9% 69 67 Positive operating earnings of $2.5 million in 65 71.0 63 the quarter 61 62.9 RiskTech deployment on schedule 59 57 94% retention rate 55 2Q 2008 2Q 2007 Claims referred declined 11.4% Broadspire Cla
Slide 8: 2008 Outlook
2008 Outlook • Consolidated revenue before reimbursements between $1.02 billion and $1.03 billion • Consolidated operating earnings between $63.4 million and $68.1 million • After reflecting stock-based compensation expense, net corporate interest expense, amortization of customer-relationship intan
Slide 9: Financial Review
Second Quarter 2008 Financial Review the STRENGTH of WORKING TOGETHER SM
Slide 10: Second Quarter 2008 Financials
Second Quarter 2008 Financials CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (In Thousands, Except Per Share Amounts) Quarter Ended June 30 2008 2007 % Change Revenues: Revenues Before Reimbursements $263,265 $240,537 9% Reimbursements 26,001 15,694 66% Total Revenues 289,
Slide 11: Summary Results, International
Second Quarter 2008 Financials $ in millions 120 Summary Results, International For the quarter ended June 30, 2008 and 2007 110 in Thousands Except Percentages 100 $113.4 Unaudited 90 2008 2007 % Change 80 $88.7 Revenues $ 113,433 $ 88,655 27.9% 70 60 Total Operating Expenses 102,987 84,089 22.5% 2
Slide 12: Summary Results, U.S. Property & Casualty
Second Quarter 2008 Financials $ in millions Summary Results, U.S. Property & Casualty 60 For the quarter ended June 30, 2008 and 2007 50 in Thousands Except Percentages 40 $51.2 $47.7 Unaudited 30 2008 2007 % Change 20 Revenues $ 51,198 $ 47,748 7.2% 10 0 Total Operating Expenses 46,106 46,551 -1.0
Slide 13: Summary Results, Broadspire
Second Quarter 2008 Financials $ in millions Summary Results, Broadspire 100 For the quarter ended June 30, 2008 and 2007 in Thousands Except Percentages 80 $83.1 Unaudited 60 $79.1 2008 2007 % Change 40 Revenues $ 79,065 $ 83,138 -4.9% 20 Total Operating Expenses 76,525 80,359 -4.8% 0 2Q 2008 2Q 20
Slide 14: Summary Results, Legal Settlement Administration
Second Quarter 2008 Financials $ in millions Summary Results, Legal Settlement Administration 21 For the quarter ended June 30, 2008 and 2007 20.5 $21.0 in Thousands Except Percentages 20 Unaudited 2008 2007 % Change 19.5 $19.6 Revenues $ 19,569 $ 20,996 -6.8% 19 18.5 Total Operating Expenses 16,427
Slide 15: Balance Sheet Highlights
Second Quarter 2008 Financials Crawford & Company Balance Sheet Highlights As of June 30, 2008 and December 31, 2007 (Unaudited, in thousands) June 30, December 31, 2008 2007 Change Cash, cash equivalents, and short-term investments $48,346 $50,855 ($2,509) Accounts receivable, net 191,980 178,528 1
Slide 16: Free Cash Flow
Second Quarter 2008 Financials Free Cash Flow For the year-to-date period ended June 30, 2008 and 2007 Unaudited (In Thousands) June 30, June 30, 2008 2007 Change Net Income $17,000 $9,359 $7,641 Plus: Depreciation / Non-Cash Items 14,837 14,540 297 Less: Special Credits - (8,824) 8,824 Less: Workin
Slide 17: WORKING TOGETHER
the STRENGTH of WORKING TOGETHER SM