Crawford & Company · NYSE:CRD.A
Crawford & — Q4 2024 Earnings Presentation
43 slides from Crawford &'s earnings presentation, Mar 4, 2025
Slide 1: Fourth Quarter and Full Year 2024 Financial Results
® CRD-A & CRD-B (NYSE) Crawford & Company Fourth Quarter and Full Year 2024 Financial Results
Slide 2: Forward-Looking Statements & Additional Information
2 Forward-Looking Statements & Additional Information Forwa rd-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: Strategic Update
3 STRATEGIC UPDATE Rohit Verma President & Chief Executive Officer Q4 & FY 2024 FINANCIAL RESULTS
Slide 4: Global Reach; Trusted Partner
4 Global Reach; Trusted Partner 70 $20B+ Countries Claims Managed Annually 10,000+ 50,000+ Employees Field Resources Q4 & FY 2024 FINANCIAL RESULTS
Slide 5: Multiple Growth Drivers Benefitting Crawford
5 Multiple Growth Drivers Benefitting Crawford Increasing weather Increased presence in Gaining market share Growing and Industry-leading volatility continues to rapidly growing P&C within fragmented U.S. strengthening strategic Insurtech capabilities drive global demand in insurance markets with in
Slide 6: Fourth Quarter 2024 Highlights
• Fourth Quarter 2024 Highlights YoY Revenue Growth 66 $347.3 • Revenue growth of 17% YoY $296.1M • Driven by increased weather-related activity from hurricanes Helene and Milton • Strong client relationships position Crawford as a key partner for outsourced claims • Revenue growth in all segments Q
Slide 7: Hurricanes Helene and Milton Drove Increased Outsourced Claims Activity in Q4
Hurricanes Helene and Milton Drove Increased 7 Outsourced Claims Activity in Q4 U.S. Severe Storm Reports1 Consolidated Weather-Related vs. Networks Revenue3 Non-Weather-Related Revenue +52% +17% +154% 1,0392 $347.3 $35.1M $296.1M +45% $113M 684 $78M +7% $13.8M $218M $234M Q4 ‘23 Q4 ‘24 Q4 ‘23 Q4 ‘2
Slide 8: Our Capital Allocation Strategy
8 Our Capital Allocation Strategy Committed to Industry-Leading Financial Strength and Employing a Disciplined Approach to Capital Allocation Paid quarterly dividend of $0.07 Investing in long-term growth Strong liquidity per share; full year dividend through Cap Ex and M&A Leverage ratio below indu
Slide 9: Operational Update
99 OPERATIONAL UPDATE Bruce Swain, Chief Financial Officer Q4 & FY 2024 FINANCIAL RESULTS
Slide 10: Full Year 2024 Revenue Contribution
10 Full Year 2024 Revenue Contribution North America International Broadspire Platform Solutions Loss Adjusting Operations (U.S.-only) (US-only) 24% 32% 30% 14% Comprised of the Following Comprised of All Service Lines Third Party Administration for: Comprised of the Following North American Service
Slide 11: North America Loss Adjusting Q4 2024 Results
11 11 North America Loss Adjusting Fourth Quarter 2024 Results $79.4M $3.4M Revenues Operating Earnings • Revenue increase of 14% driven by increased storm activity • U.S. GTS delivered record quarterly revenue of $29.2M, increasing 37% YoY • U.S. Field Operations revenue of $27.6M grew 13% YoY • Op
Slide 12: International Operations Q4 2024 Results
12 12 International Operations Fourth Quarter 2024 Results $112.5M $8.5M Revenues Operating Earnings • Revenue growth of 16% or 13% when measured in constant currency • Strong performances in UK and Europe driven by weather-related claims and large losses • Operating earnings more than tripled YoY •
Slide 13: Broadspire Q4 2024 Results
13 13 Broadspire Fourth Quarter 2024 Results $97.7M $10.1M Revenues Operating Earnings • Revenue growth of 6% driven by increased utilization of Medical Management • Operating earnings and margin decreased YoY • Impacted by planned additions to staffing to support expected revenue growth • New clien
Slide 14: Platform Solutions Q4 2024 Results
14 14 Platform Solutions Fourth Quarter 2024 Results $57.6M $4.8M Revenues Operating Earnings • Revenue growth of 55% YoY driven by claims activity from hurricanes Helene and Milton • Networks revenues increased 154% YoY • Subrogation revenues increased 4% YoY • Operating earnings growth of 144% YoY
Slide 15: Financial Update
15 15 FINANCIAL UPDATE Bruce Swain, Chief Financial Officer Q4 & FY 2024 FINANCIAL RESULTS
Slide 16: Q4 2024 Financial Summary
16 Q4 2024 Financial Summary Quarter Ended Unaudited ($ in millions, except per share amounts) December 31, 2024 December 31, 2023 % Change Revenues $347.3 $296.1 17% Non-GAAP Revenues excluding foreign exchange fluctuations(1) $344.9 $296.1 16% Net Income Attributable to Shareholders of Crawford &
Slide 17: Balance Sheet Highlights
17 Balance Sheet Highlights Unaudited ($ in thousands) Dec 31, 2024 Dec 31, 2023 Change Cash and cash equivalents $ 55,412 $ 58,363 $ (2,951) Accounts receivable, net 142,064 131,362 10,702 Unbilled revenues, net 131,080 116,611 14,469 Total receivables 273,144 247,973 25,171 Goodwill 76,368 76,724
Slide 18: Net Debt and Pension Liability
18 Net Debt and Pension Liability Net Debt Pension Liability 250,000 80,000 $74.3M 70,000 200,000 $162.7M 60,000 $137.3M 50,000 150,000 40,000 100,000 30,000 $21.1M 20,000 50,000 10,000 - - 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 Net debt at $162.7 million Pension liabi
Slide 19: Operating and Free Cash Flow
Operating and Free Cash Flow 19 Unaudited ($ in thousands) 2024 2023 Change Net Income Attributable to Shareholders of Crawford & Company $ 26,596 $ 30,609 $ (4,013) Depreciation and Other Non-Cash Operating Items 41,998 41,642 356 Deferred income taxes (3,365) (12,279) 8,914 Contingent Earnout Adju
Slide 20: Additional Financial Matters
20 Additional Financial Matters Unallocated • Unallocated corporate costs of $8.0 million in Q4 ‘24 compared to corporate costs of $9.4 million in Q4 ‘23 Corporate and Shared • Variance was primarily due to decreases in self-insurance expense and Costs and Credits professional fees. • During Q4 ‘24
Slide 21: Summary
21 Summary Leveraging strong relationships to enhance market position Leading the industry with next generation Insurtech capabilities Capitalizing on the changing landscape due to climate change and demographic shifts Financial strength and liquidity provide flexibility to pursue market opportuniti
Slide 22: Appendix: Full Year Results, Segment Results and Non-GAAP Financial Information
22 22 Appendix: Full Year Results, Segment Results and Non-GAAP Financial Information Q4 & FY 2024 FINANCIAL RESULTS
Slide 23: Full Year 2024 Highlights
Full Year 2024 Highlights • 23 23 YoY Revenue Growth • Record full year revenue of $1.29B $1.27B $1.29B • Revenue growth in three segments • Record annual revenues for Broadspire & International segments and U.S. GTS and Praxis service lines • Margin expansion and improved profitability in Broadspir
Slide 24: Occurrence of Severe Storms in the U.S. Decreased Year Over Year
Occurrence of Severe Storms in the U.S. Decreased Year 24 Over Year U.S. Severe Storm Reports1 Consolidated Weather-Related vs. Networks Revenue3 Non-Weather-Related Revenue -29.5% +2% -37.9% 34,140 $1.29B $123.9M $1.27B $396M -5% $375M 24,0552 $77.0M +5% $874M $915M FY ‘23 FY ‘24 FY ‘23 FY ‘24 FY ‘
Slide 25: North America Loss Adjusting Full Year 2024 Results
25 25 North America Loss Adjusting Full Year 2024 Results $312.2M $18.2M Revenues Operating Earnings • Revenue growth of 3% • U.S. GTS achieved record FY revenues with 21% growth driven by new business wins • Destination for specialized insurance adjusting talent with 16% workforce growth in 2024 •
Slide 26: International Operations Full Year 2024 Results
26 26 International Operations Full Year 2024 Results $418.6M $21.0M Revenues Operating Earnings • Revenue growth of 9% with record performances in Europe and Latin America • Operating earnings increased 88% • Operating margin expanded 210 bps • Segment turnaround continues driven by strategy to imp
Slide 27: Broadspire Full Year 2024 Results
27 27 Broadspire Full Year 2024 Results $388.1M $52.4M Revenues Operating Earnings • Record year for Broadspire: o Revenue growth of 9% (record year) o Operating earnings increased 25% o Operating margin expanded 174 bps • Results driven by client wins and pricing improvements • Retained 94.2% of Br
Slide 28: Platform Solutions Full Year 2024 Results
28 28 Platform Solutions Full Year 2024 Results $173.7M $11.2M Revenues Operating Earnings • Revenue declined by 23% reflecting a decrease in weather- related business due to lower U.S. severe storm activity in the first nine months of FY ‘24 • Record Subrogation revenue of $29.1M grew 8% YoY • Oper
Slide 29: North America Loss Adjusting
29 North America Loss Adjusting Three months ended Unaudited (in thousands, except percentages) December 31, 2024 December 31, 2023 Variance Revenues $79,434 $69,684 14.0% Direct expenses 66,490 57,968 14.7% Gross profit 12,944 11,716 10.5% Indirect expenses 9,578 10,964 (12.6)% Operating earnings $
Slide 30: International Operations
30 International Operations Three months ended Unaudited (in thousands, except percentages) December 31, 2024 December 31, 2023 Variance Revenues $112,491 $97,152 15.8% Direct expenses 88,747 83,992 5.7% Gross profit 23,744 13,160 80.4% Indirect expenses 15,271 10,953 39.4% Operating earnings $8,473
Slide 31: Broadspire
31 Broadspire Three months ended Unaudited (in thousands, except percentages) December 31, 2024 December 31, 2023 Variance Revenues $97,680 $92,123 6.0% Direct expenses 76,385 67,998 12.3% Gross profit 21,295 24,125 (11.7)% Indirect expenses 11,163 11,859 (5.9)% Operating earnings $10,132 $12,266 (1
Slide 32: Platform Solutions
32 Platform Solutions Three months ended Unaudited (in thousands, except percentages) December 31, 2024 December 31, 2023 Variance Revenues $57,649 $37,162 55.1% Direct expenses 47,045 29,101 61.7% Gross profit 10,604 8,061 31.5% Indirect expenses 5,848 6,115 (4.4)% Operating earnings $4,756 $1,946
Slide 33: Non-GAAP Financial Information
33 Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to
Slide 34: Non-GAAP Financial Information (cont.)
34 Non-GAAP Financial Information (cont.) Segment and Consolidated Operating Earnings Operating earnings is the primary financial performance measure used by our senior management and chief operating decision ma ker to evaluate the financial performance of our Company and operating segments and make
Slide 35: Total Revenue Before Reimbursements by Major Currency
Total Revenue Before Reimbursements by Major Currency 35 The following table illustrates revenue as a percentage of total revenue in the major currencies of the geographic areas in which Crawford does business: Three Months Ended Unaudited (in thousands) December 31, 2024 December 31, 2023 Geographi
Slide 36: Reconciliation of Non-GAAP Item
36 Reconciliation of Non-GAAP Item Revenues and Costs of Services Provided Quarter Ended Quarter Ended Unaudited ($ in thousands) December 31, 2024 December 31, 2023 Revenues Before Reimbursements Total Revenues $ 358,318 $ 309,165 Reimbursements (11,064) (13,044) Revenues Before Reimbursements 347,
Slide 37: Reconciliation of Non-GAAP Items (cont.)
37 Reconciliation of Non-GAAP Items (cont.) Operating Earnings Quarter Ended Quarter Ended December 31, 2024 December 31,2023 Unaudited ($ in thousands) North America Loss Adjusting $ 3,366 $ 752 International Operations 8,473 2,207 Broadspire 10,132 12,266 Platform Solutions 4,756 1,946 Unallocated
Slide 38: Reconciliation of Non-GAAP Items (cont.)
38 Reconciliation of Non-GAAP Items (cont.) Operating Earnings Year Ended Year Ended December 31, 2024 December 31,2023 Unaudited ($ in thousands) North America Loss Adjusting $ 18,173 $ 23,185 International Operations 21,001 11,181 Broadspire 52,429 41,873 Platform Solutions 11,173 28,541 Unallocat
Slide 39: Reconciliation of Non-GAAP items (cont.)
39 Reconciliation of Non-GAAP items (cont.) Adjusted EBITDA Quarter Ended Quarter Ended December 31, 2024 December 31, 2023 Unaudited ($ in thousands) Net Income (Loss) Attributable to Shareholders of Crawford & Company $ 5,722 $ (818) Add (Deduct): Depreciation and amortization 9,238 8,386 Stock-ba
Slide 40: Non-GAAP Financial Information (cont.)
40 Non-GAAP Financial Information (cont.) Net Debt December 31, 2024 December 31, 2023 Unaudited ($ in thousands) Short-term borrowings $ 17,894 $ 14,762 Current installments of finance leases and other obligations (72) 51 Long-term debt and finance leases, less current installments 200,315 194,335
Slide 41: Non-GAAP Financial Information (cont.)
Non-GAAP Financial Information (cont.) 41 Segment Gross Profit Three months ended Unaudited ($ in thousands) December 31, 2024 December 31, 2023 North America Loss Adjusting $ 12,944 $ 11,716 International Operations 23,744 13,160 Broadspire 21,295 24,125 Platform Solutions 10,604 8,061 Segment gros
Slide 42: Reconciliation of Fourth Quarter Non-GAAP Results
Reconciliation of Fourth Quarter Non-GAAP Results 42 Three Months Ended December 31, 2024 Net Income Attributable to Crawford & Diluted Earnings Diluted Earnings Unaudited ($ in thousands) Pretax Earnings Company per CRD-A Share per CRD-B Share(1) GAAP $ 9,578 $ 5,722 $ 0.11 $ 0.12 Adjustments: Amor
Slide 43: Reconciliation of Full-Year Non-GAAP Results
Reconciliation of Full-Year Non-GAAP Results 43 Year Ended December 31, 2024 Net Income Attributable to Crawford & Diluted Earnings Diluted Earnings Unaudited ($ in thousands) Pretax Earnings Company per CRD-A Share per CRD-B Share GAAP $ 41,112 $ 26,596 $ 0.53 $ 0.54 Adjustments: Amortization of in