Crawford & Company · NYSE:CRD.A
Crawford & — Investor Presentation (June 2023)
99 slides from Crawford &'s investor presentation, June 2023
Slide 1: Crawford 101
Crenford Crawford 101 June 2023 A aN er aes
Slide 2: Forward-Looking Statements and Additional Information
Forward-Looking Statements and Additional Information 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
Slide 3: Table of Contents
3 Table of Contents 4 Introduction to Crawford & Company 18 Industry Overview 27 Investing in Innovation 35 Growth Strategy 42 Financial Overview 45 Environmental, Social and Governance 48 Operating Segments: North America Loss Adjusting 57 Operating Segments: International Operations 59 Operating S
Slide 4: Introduction to Crawford & Company
4 Introduction to Crawford & Company
Slide 5: Who we are
5 BY MARKET¹ 35%⎹ Corporations 10,000+ Total employees 65%⎹ Carriers 1.9M Who we are BY GLOBAL SERVICE LINES Claims handled Uniquely positioned as the 23%⎹ North America Loss Adjusting largest public company in 30%⎹ International Operations $18B+ 26%⎹ Broadspire (US-only) Claims managed annually $60
Slide 6: Our History
Our History 6 1941 - Jim Crawford founds Crawford & Company in Georgia, USA Our Founding Principles 1946 - Established Crawford Educational Services training program 1. Honesty and integrity above all 2. Hard work pays 1957 - Crawford opens office in London, begins international expansion 3. Knowled
Slide 7: 80-Year-Old Brand Trusted by Key Customers
80-Year-Old Brand Trusted by Key Customers Crawford’s customer base includes the largest global insurance carriers as well as Fortune 1000 companies 7
Slide 8: Crawford Bridges the Gap Between Risk Bearers and Claimants
Crawford Bridges the Gap Between Risk Bearers and Claimants 8 We close the gap for our customers with expertise, scale and proximity Risk Bearers Claims Ecosystem Claimants Carriers Retail Customers Self-Insured Corporation Corporations Employees Captive Corporation Insurers Insured
Slide 9: Why is Crawford Needed?
Why is Crawford Needed? 9 Expertise Carriers •Large loss claims in particular require technical subject matter expertise like forensics, engineering, energy, cyber which may not always be available in-house at a carrier or self-insured corporate Capacity •Independent adjustors (“IA”) provide flexibl
Slide 10: Why is Crawford Needed? Carriers
Why is Crawford Needed? 10 CARRIERS Accuracy, Quality and Expertise Timeliness and Capacity • Claims experience is an extension of a carrier’s brand • We have the capacity and scale to be there when needed • War on talent and increasing claims complexity has amplified • Independent adjusters provide
Slide 11: Why is Crawford Needed? Corporates
Why is Crawford Needed? 11 CORPORATES Accuracy, Quality and Expertise Timeliness and Capacity • Bonus program for adjusters based on systematic and manual • 24/7 nurse triage program helps injured worker with self-care quality reviews options and seamless transfers to intake • Cross-functional servi
Slide 12: Financial Snapshot
Financial Snapshot 12 The world’s largest publicly listed independent provider of global claims management solutions OVERVIEW FY 2022 GAAP $1.2 BILLION $27.6 MILLION CRD-A & CRD-B NYSE Ticker Revenues Before Reimbursements Operating Cash Flow FY 2022 NON-GAAP2 ~$450 MILLION Market capitalization¹ $6
Slide 13: Revenue Model
Revenue Model 13 Crawford’s revenue model is driven by seven key differentiating factors Fee for service Time and expense No underwriting risk 95%+ retention rate Capital light business (CAPEX = 3% of sales) Diverse client base 3-5 year contracts
Slide 14: Evolving Crawford's Strategy for Long-Term Growth
Evolving Crawford’s Strategy for Long-Term Growth Our operating structure allows us to take market share by differentiation Corporate Strategy M&A Strategy Acquire adjacent services to Bolster technical capabilities by bolster presence in property attracting top-tier technical claim ecosystem adjust
Slide 15: Our Operating Segments
15 Our Operating Segments North America Loss Broadspire Platform Solutions International Adjusting (US-only) (US-only) Operations 23% 26% 21% 30% of FY 2022 revenues of FY 2022 revenues of FY 2022 revenues of FY 2022 revenues Comprised the Following North Third Party Administration for: Service Line
Slide 16: Experienced Leadership Team
16 Experienced Leadership Team Leadership team with an average of 30+ years of experience Rohit Verma Joseph Blanco Andrew Bart Benedict Burke Mike Hoberman Michelle Montgomery Chief Executive Officer President CEO, International CCO, Global Client President, TPA Solutions: Chief Marketing Officer O
Slide 17: Why Invest in Crawford?
Why Invest in Crawford? 17 Crawford’s leading market position in an evolving landscape provides a compelling investment narrative Experienced leadership team averaging 30 years of experience in our field Secular tailwinds provided from continued growth in large loss claims Investing in digitization
Slide 18: Industry Overview
Industry Overview Crawford
Slide 19: Competitive Landscape
Competitive Landscape 19 Crawford is a holistic company that serves all aspects of the market 01 03 04 UNIVERSAL REGIONAL NICHE Competes with us across all Competitors that only s erve a s pecific region/geography Competitors in specific geographies elements of our business globally that vary by siz
Slide 20: Strategically Positioned in a Rapidly Changing Industry
20 Strategically Positioned in a Rapidly Changing Industry Industry is looking to leverage technology and seek new cost-efficient solutions to improve profitability $219 Billion Climate change: Rising frequency and severity of weather claims Expenses Estimated Loss Digitization of volume claims: Inc
Slide 21: Adjusters Focus on Optimizing Loss Expenses for Carriers
Adjusters Focus on Optimizing Loss Expenses for Carriers 21 Crawford is focused on streamlining the total loss process to drive carrier profitability and increase carrier customer satisfaction Carrier Total Loss Expense Commission CRAWFORD’S FOCUS 15% Creating efficiencies to reduce Premium Taxes lo
Slide 22: Loss Adjuster is a Brand Extension of the Carrier
Loss Adjuster is a Brand Extension of the Carrier 22 High marks in customer satisfaction drives outsourced claims volume opportunities for Crawford Claimants are twice as likely to stop doing business with Customer satisfaction with the claims experience, and one of their insurance providers over th
Slide 23: Changes Leading to Increased Claims Outsourcing
Changes Leading to Increased Claims Outsourcing 23 1 P&C margin pressure leading to more outsourcing of major & complex claims 2 Greater need for more nimble and authoritative response to major CAT events 3 Higher concentration of insured assets in risk-prone areas 4 Increased frequency of catastrop
Slide 24: P&C Carrier Premiums Growing Steadily but Margins Under Pressure
P&C Carrier Premiums Growing Steadily but 24 Margins Under Pressure P&C Direct Written Premiums (US$ bn) Property/Casualty Insurance Combined Ratio 1996-2020 +4% CAGR $717 $592 $484 Breakeven Underwriting 2010 2015 2020 Source: Insurance Information Institute Insurance Handbook Source: NAIC data, so
Slide 25: US P&C Market Fragmented with Small and Mid-Sized Players Experiencing Margin Pressures
US P&C Market Fragmented with Small and Mid-Sized 25 Players Experiencing Margin Pressures 1. ~98% of carriers are small to medium sized¹ 2. They have limited financial capacity¹ Carriers with less than $1B in Gross Written Premiums have limited capacity and 15% scale to invest in innovation 22% Com
Slide 26: More Frequent and Destructive CAT Events Leading to Heightened Insured Losses
More Frequent and Destructive CAT Events Leading to Heightened Insured Losses Crawford uniquely positioned as insurance industry seeks cost effective solutions to address surge events that exceed their capacity with reduced claims staff. Virtual desk integrated with technology-enabled networks will
Slide 27: Investing in Innovation
Investing in Innovation Crawford
Slide 28: Advancing claims management through acquisitions, partnerships and proprietary technology
28 Owned Partnerships YouGoLook Crawford is advancing claims management through acquisitions, partnerships and proprietary technology Renovo
Slide 29: Investing to Drive Innovation and Accelerate Growth
Investing to Drive Innovation and Accelerate Growth 29 Enabling Technology¹ Key Benefits Robotic Process Automation Automa tes workflows and repetitive tasks throughout claims process API Integrations Integrates i nternal a nd external data s ources to s upport automation of Key Benefits Legend work
Slide 30: Improve Expense, Accuracy and Speed of Delivery
Improve Expense, Accuracy and Speed of Delivery 30 Powered by digitization, best-in-class quality and industry-leading claims expertise, Crawford’s customer-centric claims solutions deliver rapid, accurate claim resolution to reduce costs and improve your customer’s experience LOSS OMNI- INTELLIGENT
Slide 31: Delivering Customer Satisfaction Through Speed and Technology
Delivering Customer Satisfaction Through 31 Speed and Technology OnSite contact web app Looker app YouGoLook self-service app
Slide 32: Crawford Digital Assist
Crawford Digital Assist 32 Order Crawford services and solutions in the US quickly and easily on the web POLICYHOLDER SELF SERVICE ON-DEMAND SERVICES CONTRACTOR SERVICES ADJUSTER SERVICES EXPERT SERVICES Policyholders submit Instantly connect with Take claims all the way Tap into our vast For specia
Slide 33: Asservio
33 Asservio Crawford’s proprietary solution for enabling digitalization of estimate review process • QA Automation & Digitalization providing continuous improvement process Providing • Rules based on Crawford industry expertise and customizable by client efficiency thru reimagination • Delivers cons
Slide 34: Digital Desk
34 Digital Desk Access and triage claims from start to finish—all on one platform • Claim ingestion through multiple platform integration points Providing efficiency thru • Accelerate processing time through automated delivery to an ever-expanding array of channel partners reimagination and solution
Slide 35: Growth Strategy
Growth Strategy Crawford
Slide 36: M&A Timeline
M&A Timeline 36 Contractor Connection Acquisition 1999 Created the industry leader in managed repair solutions Supported our mission of becoming the leading third-party administrator in all segments Broadspire Acquisition 2006 of the market for casualty claims program administration Expanded our cla
Slide 37: M&A Overview
37 M&A Overview Our M&A is aligned to the three pillars of our strategy Digital • Bring digital enablement • Short circuit lead times • Differentiated and entrenched • Improve customer experience Complement primary organic growth Increase customer stickiness and deepen market share Deliver improved
Slide 38: edjuster
38 edjuster Two decades of recognized experience in the industry and a blue-chip carrier client base • In August 2021, Crawford acquired 100% of edjuster, the contents valuation leader in North America • Total purchase price of $33.1 million, structured as an upfront payment of $21.0 million in cash
Slide 39: Praxis Consulting, Inc.
39 Praxis Consulting, Inc. Leader in the subrogation claims market with over 20 years of recognized experience and proven results • In October 2021, Crawford acquired the assets of Praxis Consulting, Inc., the leading provider of outsourced subrogation clai ms management and recovery services in the
Slide 40: BosBoon
40 BosBoon More than two decades of specialist loss adjusting experience and a blue-chip client base • In October 2021, Crawford acquired 100% of BosBoon Expertise Group B.V., a reputable specialist loss adjusting company based in the Netherlands • Total purchase price of $4.9 million, structured as
Slide 41: R.P. van Dijk B.V.
41 R.P. van Dijk B.V. More than 30 years of personal injury loss adjusting experience in the Netherlands • In April 2022, Crawford purchased assets associated with R.P. van Dijk B.V., a bodily injury (“BI”) loss adjusting company based in the Netherlands • Total purchase price of $6.6 million, struc
Slide 42: Financial Overview
Financial Overview Crawford
Slide 43: Improvement in Quality of Earnings and Business Mix
Improvement in Quality of Earnings and Business Mix 43 Crawford Operating Earnings Business Mix* (2010-2022) 100% GCG sold in 2018 Significant to focus on core operational loss-adjusting 80% improvements at and TPA TPA: Broadspire; businesses; TPA: 52% Garden City Group 59% Broadspire 61% (GCG) wind
Slide 44: Net Debt and Pension Liability
44 Net Debt and Pension Liability Net Debt Pension Liability 250,000 $192.9 million 120,000 $105.2 million 100,000 200,000 80,000 150,000 60,000 100,000 $106.4 million 40,000 $25.9 million 50,000 20,000 - - 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Net debt at $192.9 mill
Slide 45: Environmental, Social and Governance
45 Environmental, Social and Governance
Slide 46: Environmental, Social and Governance
Environmental, Social and Governance We are continuing to look for opportunities across our enterprise to become more socially responsible and are increasingly integrating ESG best practices into our operations Environmental Commitment Human Capital Management In 2022, we developed our sustainabilit
Slide 47: Training and Engagement
Training and Engagement 47 Training and Education 300 hours From its inception, Crawford has led the industry in state-of-the-art training of online courses programs that continue to this day through Crawford Educational Services (CES). Crawford offers over 300 hours of courses through its online le
Slide 48: Operating Segments: North American Loss Adjusting
48 Operating Segments: North American Loss Adjusting
Slide 49: North America Loss Adjusting
49 North America Loss Adjusting For clients seeking to increase policyholder satisfaction across the full spectrum of loss adjusting needs, Crawford is the one-stop-shop delivering efficiency and savings across the U.S. and Canada Volume Major & Complex (Field) (GTS) Drive differentiation through qu
Slide 50: North America Loss Adjusting
50 North America Loss Adjusting ~900 FTE ~1,100 FTE US 14% of revenue CANADA 9% of revenue Market Data Market Data • P&C Premium: $798B • P&C Premium: $60B • 10% growth YoY • 2% growth YoY • Largest P&C insurance market • CAT Insured Losses: $2B • CAT Insured Losses: $92B • LAE to Adjusters and Appr
Slide 51: North America Loss Adjusting: Geographic Footprint
51 North America Loss Adjusting: Geographic Footprint UNITED STATES CANADA 800+ 300+ field adjusters GTS adjusters • Collaboration between GTS and Field Ops to dominate attractive markets • Market leader in select markets such as Pacific Northwest
Slide 52: Outsourced Claims Advantage
Outsourced Claims Advantage 52 Case Study: A Vineyard impacted by the California wildfires Background • California wildfires approached an unprecedented $12 billion of insured losses • A historic number of fires burned over 500,000 acres causing damage to almost 30 wineries in Napa, Sonoma and Mendo
Slide 53: Crawford solution mitigates claim management concerns
53 Crawford solution mitigates claim management concerns Challenge Large Florida insurance carrier battling existing hurricane claims RESULTS with an increase in volume from more recent storm quickly found itself experiencing low closure rates and inconsistent outcomes 27% resulting in more litigati
Slide 54: Building our Bench of Loss Adjusting Experts
54 Building our Bench of Loss Adjusting Experts Long-term strategy focused on becoming the industry benchmark in quality and expertise Focused Hiring of Major and Complex Loss Adjusting Experts(1) Adding experts for major and complex claims 200+ Q1 FY 2023 Creating digitally enabled solutions Settin
Slide 55: Complex Claims Loss Adjusting
Complex Claims Loss Adjusting 55 Product Areas Expertise Focused Complex Property Forensic Accounting Construction Time & Expense Billing Model Marine Engineering World’s Largest Technical Casualty Adjuster Network Cyber & Technology Aviation Oil & Energy Recession-Resistant Agriculture
Slide 56: Triage Model Reduces Adjusting Time and Costs
Triage Model Reduces Adjusting Time and Costs 56 Reduce cost and accelerate time in process with end-to-end handling of self-service, on-demand, and field adjusting needs Reduce time savings by 67% (Process claims in as little as 3.7 days) Reduce costs by up to 28% Claims Mix: 50% WeGoLook Users; 30
Slide 57: Operating Segments: International Operations
57 Operating Segments: International Operations
Slide 58: International Operations
International Operations Market Data UK AUS EU ASIA LATAM ~1440 FTE ~740 FTE ~760 FTE ~360 FTE ~730 FTE 10% of revenue 8% of revenue 8% of revenue 2% of revenue 2% of revenue • P&C Premium: $120B • P&C Premium: $45B • P&C Premium: $370B • Non-Life Premium: $60B • Non-Life Premium: $80B • 5% growth Y
Slide 59: Operating Segments: Platform Solutions
59 Operating Segments: Platform Solutions
Slide 60: Platform Solutions
60 Platform Solutions For clients looking for speed, cost savings, customer satisfaction and quality through end-to-end digitized solutions, Platform Solutions is reimagining claims management by uniquely architecting networks, technology and Insurtech innovations Managed Adjuster Emergency Direct t
Slide 61: Crawford Platform Solutions
61 Crawford Platform Solutions From FNOL to finished repair, our commitment is to provide digitized claim platforms that reimagine and simplify the claims process resulting in elevated customer experience outcomes Digital X iOT RPA Escape of Water Alexa Job Track Asservio Renovo Digital Desk Digital
Slide 62: Contractor Connection: Total Addressable Market
Contractor Connection: Total Addressable Market 62 Managed Repair Has Significant Growth Headroom Market and Competitive Dynamics North America Managed Repair Penetration(1) 60% Carrier use of Managed Repair Program in North 50% America could rise to above 50% in 10 years 50% Increased interest in c
Slide 63: Contractor Connection Competitive Landscape
63 Contractor Connection Competitive Landscape DIRECT COMPETITORS INDIRECT COMPETITORS Carrier Insource Programs
Slide 64: Contractor Connection Customer Experiences
Contractor Connection Customer Experiences 64 Improving the claims experience and delighting customers • Deep engagement with JD Powers to continually • Reduce time-in-process through innovative on- innovate and improve customer satisfaction demand services and new technologies • Annual review of JD
Slide 65: One Crawford approach helps insurance carrier succeed
65 One Crawford approach helps insurance carrier succeed RESULTS Challenge 1,500+ Mid-size insurance company looks for partner to manage their $600M premium small business program and help drive claims innovations that claims processed in the first shape their business moving forward. 6 weeks 30 day
Slide 66: Reimagining the claims process: Platforms Solutions
66 66 Reimagining the claims process Platforms Solutions
Slide 67: The Claims Process Evolution
67 The Claims Process Evolution Crawford Platform Solutions is using digital tools to improve efficiency, accuracy and quality of claims process Traditional Claims Process Reimagined Claims Process Policyholder reports claim. Carrier uses manual process to segment and channel claim. Automated triage
Slide 68: Reimagining the Claims Process
68 Reimagining the Claims Process Past (2000) Present (2022) Future (2030) Traditional: 80% Traditional: 70% Traditional: 20% Network/Fast Track Desk: 20% Network/Virtual Desk: 30% Network/Virtual Desk: 80% Contractor Network Contractor 2% Fast Track Traditional Network Desk 20% 20% Contractor 18% N
Slide 69: Crawford Platform Solutions: Growth Engine of the Future
69 Crawford Platform Solutions: Growth Engine of the Future Platforms strategy will develop the ‘next generation’ of the company Transformational Driver • Reimagining and simplifying the historically complex claims process through digital solutions • FY 2022 Segment Revenue: $243.7M • FY 2022 Segmen
Slide 70: Platforms Driving Loss Ratio Improvement
70 Platforms Driving Loss Ratio Improvement Reduce Claim Costs through Reimagination • Virtual Desk claims processing integrated with Network Solutions 7.5% powered by Digital Platforms drives: Average Indemnity Driving Loss Ratio Improvement Savings o Faster service o Reduced claim expense o Indemn
Slide 71: Contractor Connection
71 Contractor Connection Key Stakeholder Value Service Delivery Highlights Value Proposition Contractor Services The largest managed repair network in the U.S., driving increased policy • Emergency Services – Board Up, Tree Removal, Roof Tarping holder satisfaction and indemnity accuracy, while enha
Slide 72: Crawford Catastrophe Services
72 Crawford Catastrophe Services Key Stakeholder Value Service Delivery Highlights Value Proposition Global Presence Enhancing the customer experience through scalable claims • Technology enabled scalable Workforce 12,000+ strong adjudication solutions leveraging the full spectrum of technology • US
Slide 73: WeGoLook
73 WeGoLook Key Stakeholder Value Service Delivery Highlights Value Proposition • Speed–We provide networks and technology to complete inspections Enhancing the policyholder experience and optimizing claim expense quickly. (Average time to complete inspections is 1.6 days). by combining technology w
Slide 74: Operating Segments: Broadspire
74 Operating Segments: Broadspire
Slide 75: Broadspire
75 Broadspire For companies looking to enhance the claims experience and drive quantifiable savings, Broadspire is the U.S. third- party administrator that delivers client-centric integrated outsourced solutions powered by innovation and data science Workers Auto/ General Medical Disability Compensa
Slide 76: Workers Comp Claim Severity Rising
Workers Comp Claim Severity Rising 76 Rising claims severity and outsourcing create additional opportunities for Crawford to help carriers maintain and strengthen customer relationships • According to a recent study by Hynes WC Lost-Time Claim Severity ($ in billions)¹ Associates, 95% of TPAs $60 re
Slide 77: Leveraging Data & Analytics to Drive Growth in Broadspire
77 Leveraging Data & Analytics to Drive Growth in Broadspire Streamlined approach to casualty claim solutions Omni-channel Desk Adjuster FNOL¹/ Intake WeGoLook 43% of nurse Claim Office On-demand Services Claim triage calls result Team Manager Resolution in self-care Medical Management Dedicated or
Slide 78: Nurses heal financial burden
78 Nurses heal financial burden Challenge RESULTS A national discount retailer was experiencing an unusually high rate of workers compensation claims. If not addressed 46% immediately, the company would suffer significant financial losses putting the business as risk. reduction in open claims 50% So
Slide 79: Conclusion
Conclusion Crawford
Slide 80: Why Invest in Crawford?
Why Invest in Crawford? 80 Crawford’s leading market position in an evolving landscape provides a compelling investment narrative Experienced leadership team averaging 30 years of experience in our field Secular tailwinds provided from continued growth in large loss claims Investing in digitization
Slide 81: Crawford & Company
81 Crawford & Company The world’s largest publicly listed independent provider of global claims management and outsourcing solutions. 10,000+ 50,000+ 70 $18B+ employees Field Resources countries claims managed annually
Slide 82: Appendix A: Full Year 2022 Consolidated Financial Results
82 Appendix A: Full Year 2022 Consolidated Financial Results
Slide 83: Full Year 2022 Financial Summary
83 83 Full Year 2022 Financial Summary Year Ended December 31, December 31, ($ in millions, except per share amounts) 2022 2021 % Change Revenues $1,189.5 $1,102.0 8% Non-GAAP Revenues excluding foreign exchange fluctuations (1) $1,224.1 $1,102.0 11% Net (Loss) Income Attributable to Shareholders of
Slide 84: Balance Sheet Highlights
84 Balance Sheet Highlights 84 December 31, December 31, Unaudited ($ in thousands) 2022 2021 Cha nge Cash and cash equivalents $ 46,007 $ 53,228 $ (7,221) Accounts receivable, net 141,106 134,458 6,648 Unbilled revenues, net 126,274 118,722 7,552 Total receivables 267,380 253,180 14,200 Goodwill 76
Slide 85: Operating and Free Cash Flow
85 Operating and Free Cash Flow 85 Unaudited ($ in thousands) 2022 2021 Cha nge Net (Loss) Income Attributable to Shareholders of Crawford & Company $ (18,305) $ 30,692 $ (48,997) Depreciation and Other Non-Cash Operating Items 48,191 44,625 3,566 Goodwill Impairment 36,808 — 36,808 (Gain) Loss on D
Slide 86: Appendix B: Global Service Lines
86 Appendix B: Global Service Lines
Slide 87: North America Loss Adjusting
87 North America Loss Adjusting Year ended (in thousands, except percentages) December 31, 2022 December 31, 2021 Variance 2022 Highlights • FY revenue growth of 12.7% over prior year, due to Revenues $274,755 $243,789 12.7% increased activity related to Hurricane Ian and Winter Storm Elliott in U.S
Slide 88: International Operations
88 International Operations Year ended (in thousands, except percentages) December 31, 2022 December 31, 2021 Variance 2022 Highlights Revenues $357,452 $357,909 (0.1)% • FY constant currency revenue growth of 8.5% over prior year. FX rates reduced revenue by $31.0 million Direct expenses 315,590 30
Slide 89: Platform Solutions
89 Platform Solutions Year ended (in thousands, except percentages) December 31, 2022 December 31, 2021 Variance 2022 Highlights Revenues $243,711 $199,299 22.3% • FY revenue growth of 22.3% over prior year • Strong profit contribution from CAT due to increased Direct expenses 187,420 151,304 23.9%
Slide 90: Broadspire
90 Broadspire Year ended (in thousands, except percentages) December 31, 2022 December 31, 2021 Variance 2022 Highlights Revenues $313,564 $301,035 4.2% • FY revenue growth of 4.2% over prior year, driven by increased economic activity, new and existing business growth along with favorable pricing D
Slide 91: Appendix C: Non-GAAP Financial Information
91 Appendix C: Non-GAAP Financial Information
Slide 92: Appendix: Non-GAAP Financial Information
92 Appendix: Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comp
Slide 93: Appendix: Non-GAAP Financial Information (cont.)
93 Appendix: Non-GAAP Financial Information (cont.) Segment and Consolidated Gross Profit Gros s profit is defined as revenues l ess direct expenses which exclude indirect overhead expenses allocated to the business. Indirect expenses consist of centralized administrative s upport costs, regional an
Slide 94: Total Revenues Before Reimbursements by Major Currency
94 Total Revenues Before Reimbursements by Major Currency The following table illustrates revenue as a percentage of total revenue in the major currencies of the geographic areas in which Crawford does business: Year Ended December 31, December 31, (in thousands) 2022 2021 Geographic Area Currency U
Slide 95: Reconciliation of Non-GAAP Items
95 Reconciliation of Non-GAAP Items Revenues and Costs of Services Provided Year Ended Year Ended December 31, December 31, Unaudited ($ in thousands) 2022 2021 Revenues Before Reimbursements Total Revenues $ 1,231,226 $ 1,139,231 Reimbursements (41,744) (37,199) Revenues Before Reimbursements 1,189
Slide 96: Reconciliation of Non-GAAP Items (cont.)
96 Reconciliation of Non-GAAP Items (cont.) Segment Gross Profit and Consolidated Operating Earnings Year Ended Year Ended December 31, December 31, Unaudited ($ in thousands) 2022 2021 Operating Earnings: North America Loss Adjusting $ 19,431 $ 15,015 International Operations (13,269) 4,918 Broadsp
Slide 97: Reconciliation of Non-GAAP Items (cont.)
97 Reconciliation of Non-GAAP Items (cont.) Adjusted EBITDA ) Year Ended December 31, December 31, Unaudited ($ in thousands) 2022 2021 Net (loss) income attributable to shareholders of Crawford & Company $ (18,305) $ 30,692 Add: Depreciation and amortization 36,098 40,176 Stock-based compensation 4
Slide 98: Reconciliation of Non-GAAP Items (cont.)
98 Reconciliation of Non-GAAP Items (cont.) Net Debt December 31, December 31, Unaudited ($ in thousands) 2022 2021 Net Debt Short-term borrowings $ 26,966 $ 10,616 Current installments of finance leases and other obligations 82 88 Long-term debt and finance leases, less current installments 211,810
Slide 99: Reconciliation of Full Year Non-GAAP Results
99 Reconciliation of Full Year Non-GAAP Results Year Ended December 31, 2022 Net (Loss) Income Diluted (Loss) Diluted(Loss) Attributable to Earnings per CRD-A Earnings per CRD-B Unaudited ($ in thousands) Pretax Earnings Crawford & Company Share Share GAAP $ 5,046 $ (18,305) $ (0.37) $ (0.37) Adjust
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